Question
On September 1, 2018, A Company purchased merchandise from S Company of Japan for 20,000,000 yen payable on October 1, 2018. The spot rate for
- On September 1, 2018, A Company purchased merchandise from S Company of Japan for 20,000,000 yen payable on October 1, 2018. The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October The purchase was paid on October 1, 2018.
Required:
1. Did the U.S. dollar strengthen or weaken from September to October and what are the implications for A's business?
2. What journal entry did A record on September 1, 2017?
3. What journal entry did A record on October 1, 2017?
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
