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The following is information on S/e exchange rates: A U.S. company takes delivery of merchandise from an Italian aupplier on November 1,2013 (and records an

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The following is information on S/e exchange rates: A U.S. company takes delivery of merchandise from an Italian aupplier on November 1,2013 (and records an accounts payable). Payment of 1,000,000 will be made on Febrary 15, 2014. The U.S. company enters a forward contract on Novenber 1,2013 , locking in the purcliase price of e1,000,000 at $1.40C for delivery on February 15,2014 . It closes the forward on February 15 and pays the supplier. The U.S. company sells the merchandise later in 2014. The U.S. company's accounting year ends December 31. Required: As applicable, prepare (IN GOOD FORM) all joumal entries (and all supporting calculations) required on November 1,2013 and December 31,2013-please place the appropriate date at the left of each entry. Problem FIVE ( 6 points): A U.S company acquired a French subsidinry on January 1,2014. The subsidiary's trial Dilances for January 1 and December 31,2014 are presented below, in euros. New plant \& equipment of 80,000 was acquired in 2014. Operating expenses include e50,000 of depreciation on plant \& equipment, of which 66,000 is related to plant \& equipment purchased in 2014. Requirement A: Assume that there was a remeasurement gain of $12,000. Please indicate where this amount is reported in the financial statements (in one complete sentence). [You may opecify the account, the financial statement or the subsection of a financial statement (as appropriate in the situation). However, "net asuets" and/or "equity section" are not acceptable answen.] Requirement B: Assume that there was a translation loss of $12,000. Please indicate where this amount is reported in the financial statements (in one complete sentence). [You may specify the account, the financial statement or the subsection of a finncial statement (as appropriate in the situation). However, "net assets" and/or "equity section" are not accoptable answern.] Problem SIX ( 5 points): Please draw a diagram (IN GOOD FORM) depicting the two-step foreign currency financial statement convension process (similar to the diagnm in the text). This would include the appropriate labels and descriptions underlying logic (etc) in the appropriate locations on the diagram. 0

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