Question $1$

At the beginning of $2017,$ Impar Ltd$.$ has no inventories that were purchased in a foreign currency. On October $1,2017,$ the company purchases inventories on account in Argentina at a cost of $560,000$ Argentine Pesos $($AP$).$ At this time the spot rate was AP $1\mathrm{.}00=$$$0\mathrm{.}35.$

On November $1,2017,$ AP$400,000$ of these goods were sold for $$225,000$ cash. Also, on this date, the Company paid AP $450,000$ of the account payable. The spot rate on this date was AP $1\mathrm{.}00=$$$0\mathrm{.}36.$

At December $31,$ the exchange rate was AP $1\mathrm{.}00=$$$0\mathrm{.}38.$ Impar Ltd$.$ carries it inventories at cost$.$

a$)$ Prepare the journal entries for the above information.

b$)$ Calculate the balance of the following on Impar Ltd$.\text{'}$s December $31,2017$ Financial Statements:

a$.$ Inventories

b$.$ Accounts Payable