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Please answer all questions on a Microsoft Excel spreadsheet ONLY and show calculations. E 12-9 Various foreign currency-denominated transactions settled in subsequent year Monroe Corporation
Please answer all questions on a Microsoft Excel spreadsheet ONLY and show calculations.
E 12-9 Various foreign currency-denominated transactions settled in subsequent year Monroe Corporation imports merchandise from some Canadian companies and exports its own products to other Ca- nadian companies. The unadjusted accounts denominated in Canadian dollars at December 31, 2011, are as follows: Account receivable from the sale of merchandise on December 16 to Carver Corporation. Billing is for 150,000 Canadian dollars and due January 15, 2012 $103,500 Account payable to Forest Corporation for merchandise received December 2 and payable on January 30, 2012. Billing is for 275,000 Canadian dollars. $195,250 Derivatives and Foreign Currency: Concepts and Common Transactions 417 Exchange rates on selected dates are as follows: December 31, 2011 January 15, 2012 January 30, 2012 $0.680 $0.675 $0.685 REQUIRED 1. Determine the net exchange gain or loss from the two transactions that will be included in Monroe's in- come statement for 2011 2. Determine the net exchange gain or loss from settlement of the two transactions that will be included in Monroe's 2012 income statement. E 12-9 Various foreign currency-denominated transactions settled in subsequent year Monroe Corporation imports merchandise from some Canadian companies and exports its own products to other Ca- nadian companies. The unadjusted accounts denominated in Canadian dollars at December 31, 2011, are as follows: Account receivable from the sale of merchandise on December 16 to Carver Corporation. Billing is for 150,000 Canadian dollars and due January 15, 2012 $103,500 Account payable to Forest Corporation for merchandise received December 2 and payable on January 30, 2012. Billing is for 275,000 Canadian dollars. $195,250 Derivatives and Foreign Currency: Concepts and Common Transactions 417 Exchange rates on selected dates are as follows: December 31, 2011 January 15, 2012 January 30, 2012 $0.680 $0.675 $0.685 REQUIRED 1. Determine the net exchange gain or loss from the two transactions that will be included in Monroe's in- come statement for 2011 2. Determine the net exchange gain or loss from settlement of the two transactions that will be included in Monroe's 2012 income statement
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