Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pinnacle Foods imports a variety of tems for resale to US. retailers. Following is a description of purchases and foreign currency denominated payments made in

image text in transcribed
image text in transcribed
image text in transcribed
Pinnacle Foods imports a variety of tems for resale to US. retailers. Following is a description of purchases and foreign currency denominated payments made in the ust accounting produce direct exchange rates for each date: Zountry Amount Spot rate at Spot rate Currency purchase at payment Australia 200.000 Australian dollar 507000 30.700 Thailand 800.000 Bar 0.0345 0.0365 Hong Kong 5.000.000 Hong Kong dole 07319 0.9362 Jordan 500.000 Din 14100 1.100 Required Prepare the journal entries made by Pinnace a US company, to record the above purchase and payment transactions Australia Description Debit Credit Inver pytle . O To record purchase of For renty 0.X ow Canh 0 OK To record purchase sufficer for next by Sophie Accounts payatve . ov Echange . OM Foreign currency OW Toscand payment of Babe SUP Thailand Description Creu Invernes Accounts payable O OM 0 O 0 OW Forum || To record de som forecarritory your he coins payat Ethang for currency 0 OW DK Debit 0 x Credit 0 0 0 0 X 0 0 0 0 x 0 "Hong Kong Description Inventories Accounts payable To record purchase of inventory Foreign currency Cash To record purchase sufficient foreign currency to pay supplier. Accounts payable Exchange loss Foreign currency To record payment of liability to supplier. Jordan Description Inventories Accounts payable To record purchase of inventory Foreign currency Cash To record purchase sufficient foreign currency to pay supplier. Accounts payable Exchange gain Foreign currency To record payment of liability to supplier. Credit 0 Debit 0 > 0 X 0 . 0 0 x 0 0 x 0 OX 0 0 Spot rate at Spot rate Country Amount Currency purchase at payment Australia 200,000 Australian dollar $0.7600 $0.7300 Thailand 800,000 Baht 0.0345 0.0365 Hong Kong 5,000,000 Hong Kong dollar 0.1319 0.1362 Jordan 500,000 Dinar 1.4100 1.3900 Required Prepare the journal entries made by Pinnacle, a U.S.company, to record the above purchase and payment transactions. Australia Description Debit Credit Inventories 0 X Accounts payable 0 To record purchase of inventory Foreign currency 0 Cash 0 0X To record purchase sufficient foreign currency to pay supplier Accounts payable OX 0 Exchange gain 0 OX Foreign currency 0 0 X To record payment of liability to supplier Thailand Description Debit Credit Inventories Accounts payable To record purchase of inventory Foreign currency OX Cash To record purchase sufficient foreign currency to pay supplier Accounts payable Exchange loss Foreign currency OX To record payment of liability to supplier 0 0 0 x 44 0 OX 0 0X 0 0 O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Auditors Guide To Auditing Financial Statements In The UK

Authors: Steve Collings

1st Edition

1526527480, 978-1526527486

More Books

Students also viewed these Accounting questions