Recording Import and Export Transactions

Homestyle Brands imports materials from other countries and exports finished products to customers throughout the world. Information regarding four such transactions occurring in the last accounting period, all denominated in units of foreign currency, is given below:

Country	Amount	Spot Rate at Transaction Date	Spot Rate at Payment Date
1. Import from Taiwan	100,000 Taiwan dollars	$0.033	$0.028
2. Import from Poland	600,000 zloty	0.280	0.310
3. Export to Brazil	400,000 reals	0.321	0.358
4. Export to Switzerland	950,000 Swiss francs	1.040	1.007

Required

Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date and on the payment date.

Import Transaction 1

General Journal
Description	Debit	Credit
Transaction date:
AnswerCashExchange lossInventoryAccounts payable	Answer	Answer
AnswerInventoryCashExchange lossAccounts payable	Answer	Answer
Payment date:
AnswerAccounts payableInventoryCashExchange loss	Answer	Answer
Exchange gain	Answer	Answer
AnswerAccounts payableCashExchange lossInventory	Answer	Answer

Import Transaction 2

General Journal
Description	Debit	Credit
Transaction date:
AnswerCashExchange lossAccounts payableInventory	Answer	Answer
AnswerExchange lossCashInventoryAccounts payable	Answer	Answer
Payment date:
Accounts payable	Answer	Answer
AnswerInventoryAccounts payableExchange lossCash	Answer	Answer
AnswerInventoryAccounts payableExchange lossCash	Answer	Answer

Export Transaction 3

General Journal
Description	Debit	Credit
Transaction date:
AnswerCashAccounts receivableSalesInventory	Answer	Answer
AnswerCashSales revenueInventoryAccounts receivable	Answer	Answer
Payment date:
AnswerCashExchange lossInventoryAccounts receivable	Answer	Answer
Exchange gain	Answer	Answer
AnswerInventoryAccounts receivableCashExchange loss	Answer	Answer

Export Transaction 4

General Journal
Description	Debit	Credit
Transaction date:
AnswerAccounts receivableSalesCashInventory	Answer	Answer
AnswerAccounts receivableSales revenueInventoryCash	Answer	Answer
Payment date:
Cash	Answer	Answer
AnswerCashExchange lossSalesInventory	Answer	Answer
AnswerAccounts receivableSalesCashInventory	Answer	Answer