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On October 1st 2020, American Company purchased a 1,000,000 Yen CD when the Yen was worth 2 cents The 3 year 12% CD pays interest
| On October 1st 2020, American Company purchased a 1,000,000 Yen CD when the Yen was worth 2 cents | ||||||||
| The 3 year 12% CD pays interest on April 1st and October 1st each year. | ||||||||
| Other information: | ||||||||
| December 31, 2020 Yen is worth 3 cents | ||||||||
| April 1st 2021 Yen is worth 2.5 cents | ||||||||
| October 1st 2021 Yen is worth 2 cents | ||||||||
| December 31, 2021 Yen is worth 3.5 cents | ||||||||
| April 1st 2022 Yen is worth 4 cents | ||||||||
| October 1st 2022 Yen is worth 3.5 cents | ||||||||
| December 31st Yen is worth 3 cents | ||||||||
| April 1st 2023 Yen is worth 2 cents | ||||||||
| October 1st 2023 Yen is worth 1.5 cents. | ||||||||
| REQUIRED: | Make all the journal entries American Company makes with respect to its CD including the purchase and redemption of the CD. | |||||||
| Hint; don't forget adjusting entries needed on December 31st. | ||||||||
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
