Week Six Practice Problem 1 Quantum Company imports goods from different countries. Some transactions are denominated in U.S. dollars and others in foreign currencies. A summary of accounts receivable and accounts payable on December 31, 20X8, before adjustments for the effects of changes in exchange rates during 20X8, follows: $100,000 $50,000 Accounts receivable: In U.S. dollars In 60,000 Swiss francs (SFr) Accounts payable: In U.S. dollars In 10,000,000 yen ) $86,000 $97,000 The spot rates on December 31, 208, were: 1 SFr = $0.85 1 Yen $0.0095 The average exchange rates during the collection and payment period in 20X9 are: 1 SFr = $0.90 1 Yen = $0.0098 Required: 1. Prepare the adjusting entries on December 31, 20X8. 2. Record the collection of the accounts receivable and the payment of the accounts payable in 20X9. 3. What was the fareian curane nain ar lave an the annunte varaivable transaction during 20X8, follows: $100,000 $50,000 Accounts receivable: In U.S. dollars In 60,000 Swiss francs (SFr) Accounts payable: In U.S. dollars In 10,000,000 yen $86,000 $97,000 The spot rates on December 31, 208, were: 1 SFr = $0.85 1 Yen $0.0095 The average exchange rates during the collection and payment period in 20X9 are: 1 SFr = $0.90 1 Yen = $0.0098 Required: 1. Prepare the adjusting entries on December 31, 20X8. 2. Record the collection of the accounts receivable and the payment of the accounts payable in 20X9. 3. What was the foreign currency gain or loss on the accounts receivable transaction denominated in SFr for the year ended December 31, 20X8? For the year ended December 31, 20X9? Overall, for this transaction? 4. What was the foreign currency gain or loss on the accounts receivable transaction denominated in Y? For the year ended December 31, 20X8? For the year ended December 31, 20X9? Overall, for this transaction