Part I

Maple Company had the following export and import transactions during $20$X$5$:

On March $1,$ Maple sold goods to a Canadian company for $C$$$30,000,$ receivable on May $30.$ The spot rates for Canadian dollars were $C$$$1=$$$0\mathrm{.}65$ on March $1$ and $C$$$1=$$$0\mathrm{.}68$ on May $30.$

On July $1,$ Maple signed a contract to purchase equipment from a Japanese company for $500,000.$ The equipment was manufactured in Japan during August and was delivered to Maple on August $30$ with payment due in $60$ days on October $29.$ The spot rates for yen were $1=$$$0\mathrm{.}102$ on July $1,1=$$$0\mathrm{.}104$ on August $30,$ and $1=$$$0\mathrm{.}106$ on October $29.$ The $60-$day forward exchange rate on August $30,205,$ was $1=$$$0\mathrm{.}1055.$

On November $16,$ Maple purchased inventory from a London company for $10,000,$ payable on January $15,206.$ The spot rates for pounds were $1=$$$1\mathrm{.}65$ on November $16,1=$$$1\mathrm{.}63$ on December $31,$ and $1=$$$1\mathrm{.}64$ on January $15,206.$ The forward rate on December $31,205,$ for a January $15,206,$ exchange was $1=$$$1\mathrm{.}645.$

Required:

Prepare journal entries to record Maple's import and export transactions during $20$X$5$ and $20$X$6.$

a$-1$

a$-2$

a$-3$

b$.$ What amount of foreign currency transaction gain or loss would Maple report on its income statement for $20$X$5?$

Complete this question by entering your answers in the tabs below.

Req $1$ A$1$

Req $1$ A$2$

Prepare journal entries to record Maple's import and export transactions during $20$X$5$ and $20$X$6.$

Note: If no entry is required for a particular transaction, select $"$No journal entry required" in the first account field.

$1$ Record the sale of goods.

$2$ Record the foreign currency transaction gain or loss.

$3$ Record the receipt of foreign currency receivables.

$4$ Record the receipt of foreign currency.