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Wolfe Computer is a U . S . company that manufactures portable personal computers. Many of the components for the computer are purchased abroad, and
Wolfe Computer is a US company that manufactures portable personal computers. Many of the components for the computer are purchased abroad, and the finished product is sold in foreign countries as well as in the United States. Among the recent transactions of Wolfe are the following: October Purchased from Mitsutonka, a Japanese company, disk drives. The purchase price was payable in days. Current exchange rate, $ per yen. Wolfe uses the perpetual inventory method; debit the Inventory of Raw Materials account November Sold personal computers to the Bank of England for due in days. The cost of the computers, to be debited to the Cost of Goods Sold account, was $ Current exchange rate, $ per British pound. Use one compound journal entry to record the sale and the cost of goods sold. In recording the cost of goods sold, credit Inventory of Finished Goods November Issued a check to Inland Bank for $ in full payment of account payable to Mitsutonka. December Purchased grayscale monitors from German Optical for payable in days. Current exchange rate, $ per euro. Debit Inventory of Raw Materials December Collected dollarequivalent of from the Bank of England. Current exchange rate, $ per British pound. December Sold personal computers to Computique, a Swiss retail chain, for SFr due in days. Current exchange rate, $ per Swiss franc. The cost of the computers, to be debited to Cost of Goods Sold and credited to Inventory of Finished Goods, is $ Required: Prepare in general journal form the entries necessary to record the preceding transactions. Prepare the adjusting entries needed at December for the account payable to German Optical and the SFr account receivable from Computique. Yearend exchange rates, $ per euro and $ per Swiss franc. Use a separate journal entry to adjust each account balance. Compute the unit sales price of computers in US dollars in either the November or December sales transaction. The sales price is the same in each transaction. Compute the exchange rate for the yen, stated in US dollars, on November
Wolfe Computer is a US company that manufactures portable personal computers. Many of the components for the computer are purchased abroad, and the finished product is sold in foreign countries as well as in the United States. Among the recent transactions of Wolfe are the following:
October Purchased from Mitsutonka, a Japanese company, disk drives. The purchase price was payable in days. Current exchange rate, $ per yen. Wolfe uses the perpetual inventory method; debit the Inventory of Raw Materials account
November Sold personal computers to the Bank of England for due in days. The cost of the computers, to be debited to the Cost of Goods Sold account, was $ Current exchange rate, $ per British pound. Use one compound journal entry to record the sale and the cost of goods sold. In recording the cost of goods sold, credit Inventory of Finished Goods
November Issued a check to Inland Bank for $ in full payment of account payable to Mitsutonka.
December Purchased grayscale monitors from German Optical for payable in days. Current exchange rate, $ per euro. Debit Inventory of Raw Materials
December Collected dollarequivalent of from the Bank of England. Current exchange rate, $ per British pound.
December Sold personal computers to Computique, a Swiss retail chain, for SFr due in days. Current exchange rate, $ per Swiss franc. The cost of the computers, to be debited to Cost of Goods Sold and credited to Inventory of Finished Goods, is $
Required:
Prepare in general journal form the entries necessary to record the preceding transactions.
Prepare the adjusting entries needed at December for the account payable to German Optical and the SFr account receivable from Computique. Yearend exchange rates, $ per euro and $ per Swiss franc. Use a separate journal entry to adjust each account balance.
Compute the unit sales price of computers in US dollars in either the November or December sales transaction. The sales price is the same in each transaction.
Compute the exchange rate for the yen, stated in US dollars, on November
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