On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered from a vendor in France. The invoice was for 350,000 euro and was due January 20, 20X6. On December 13, 20X5, Diamonds British division sold the merchandise and issued the customer an invoice for 400,000 pounds due February 13, 20X6. Both invoices were paid on their due date. Exchange rates were as follows:

Date	Euro	British Pound
November 20, 20X5	$1.1698	$1.6356
December 13, 20X5	1.1713	1.6317
December 31, 20X5	1.1684	1.6286
January 20, 20X6	1.1665	1.6334
February 13, 20X6	1.1652	1.6293

A. Record all journal entries related to the purchase and sales transactions in Diamond Corporations books on the following dates. Be sure to identify floating amounts with the proper foreign currency (i.e., /euro or /pound) for full credit. Hint - there are 6 journal entries. The journal entry dates are as follows: November 20, 20X5, December 13, 20X5, December 31, 20X5, January 20, 20X6, and February 13, 20X6.

B. Determine the net exchange gain/(loss) from the above purchase and sale transactions to be included in Diamonds Income Statement for 20X5 and 20X6. Identify whether it is a gain or loss.

20X5 Income Statement

20X6 Income Statement