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Pinnacle Foods imports a variety of items for resale to U.S. retailers. Following is a description of purchases and foreign-currency-denominated payments made in the last
Pinnacle Foods imports a variety of items for resale to U.S. retailers. Following is a description of purchases and foreign-currency-denominated payments made in the last accounting period, plus the direct exchange rates for each date: | |||||
Country | Amount | Currency | Spot rate at purchase | Spot rate at payment | |
Argentina | 250,000 | Peso | $0.06 | $0.05 | |
Canada | 400,000 | Dollar | 0.732 | 0.713 | |
India | 300,000 | Rupee | 0.016 | 0.018 | |
South Africa | 100,000 | Rand | 0.074 | 0.077 | |
Required | |||||
Prepare the journal entries made by Pinnacle, a U.S. company, to record the above purchase and payment transactions. | |||||
Argentina | |||||
Description | Debit | Credit | |||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
To record purchase of inventory | |||||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
To record purchase sufficient foreign currency to pay supplier. | |||||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
A/p OR Cash OR Gain OR Loss Or Forgein Currency or Inventory | ? | ? | |||
Foreign Currency | ? | ? | |||
To record payment of liability to supplier. |
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