Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. - on june 1, 2017, xyz company in u.s sold invento

- On June 1, 2017, XYZ Company in U.S sold inventory to Nature Inc. in...

80.2K

Verified Solution

Question

Accounting

- On June 1, 2017, XYZ Company in U.S sold inventory to Nature Inc. in UK for 60,000 pounds when the spot rate was 1.30 dollars. The invoice was paid by Nature on February 3, 2018, when the spot rate was 1.40 dollars. On December 2017 the spot rate was 1.50 dollars. (8 marks)

Required:

  1. Prepare the required journal entries at XYZ Company. (4.2 marks)
  2. Did the U.S. dollar strengthen or weaken from June to February and what are the implications for XYZ business? (3.8 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A random sample of surgical procedures was selected each month for 30 consecutive months, and the...

Statistics
Q

Describe how a poison could affect the electron transport system in cellular respiration. Explain how it...

Biology
Q

3) Describe the purposes of the principle process involved in treatment of waste water .

Biology
Q

Brown County operates a solid waste landfill for the citizens of the county. The following events...

Accounting
Q

Atoms or molecules that have orbitals containing a single unpaired electron tend to be highly...

Biology
Q

Given a railroad curve with the following parameters Dc 2 00 00 18 00 00...

Basic Math
Q

An action movie was released two months ago and has been playing at a local...

Basic Math
Q

Gauging the Favorableness of Variances When variances occur, they are described as being...

Accounting
Q

1) Which of the following amounts generally produces positive AMT adjustments? a.A deduction for real...

Accounting
Q

HELP ME PLEASE!! Exercise 6-2 (Algo) Prepare a multiple-step income statement (LO6-2)...

Accounting
Q

This is a PYP question. Rronntanw The following supporting information is available: (i)...

Accounting
Q

13. Dumping is used in the text to represent the: a. exporting of goods that...

Finance