Recording Import Transactions

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
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
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase of inventory
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase sufficient foreign currency to pay supplier.
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
Foreign currency		Answer	Answer
To record payment of liability to supplier.

Thailand

Description		Debit	Credit
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase of inventory
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase sufficient foreign currency to pay supplier.
Accounts payable		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record payment of liability to supplier.

Hong Kong

Description		Debit	Credit
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase of inventory
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase sufficient foreign currency to pay supplier.
Accounts payable		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record payment of liability to supplier.

Jordan

Description		Debit	Credit
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase of inventory
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
To record purchase sufficient foreign currency to pay supplier.
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
AnswerAccounts payableCashExchange gainExchange lossForeign currencyInventories		Answer	Answer
Foreign currency		Answer	Answer
To record payment of liability to supplier.