Suppose Lavender Corporation completed the following international transactions May 1 Sold inventory on account to Palermo, the Italian automaker, for 60,000 The exchange rate of the euro was $1 38, and Palermo demands to pay in euros 10 Purchased supplies on account from a Canadian company at a pr...

Req 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT May 1 Accounts Receivable 60000 1 ...

Suppose Lavender Corporation completed the following international transactions: May 1 Sold inventory on account to Palermo, the

Question:

Suppose Lavender completed the following international transactions:
May 1 Sold inventory on account to Palermo, the Italian automaker, for €60,000. The of the euro was $1.38, and Palermo demands to pay in euros.
10 Purchased supplies on account from a Canadian company at a price of Canadian $57,000. The of the Canadian dollar was $0.78, and the payment will be in Canadian dollars.
17 Sold inventory on account to an English firm for 148,000 British pounds. Payment will be in pounds, and the of the pound was $1.94.
22 Collected from Palermo. The is €1 = $1.41.
Jun 18 Paid the Canadian company. The of the Canadian dollar is $0.77.
24 Collected from the English firm. The of the British pound was $1.91.

Requirements
1. Record these transactions in Lavenders journal and show how to report the transaction gain or loss on the income statement.
2. How will what you learned in this problem help you structure international transactions?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...