Bartlett Company, headquartered in Cincinnati, Ohio, has occasional transactions

Question

Bartlett Company, headquartered in Cincinnati, Ohio, has occasional transactions with companies in a foreign country whose currency is the lira.

Prepare journal entries for the following transactions in U.S. dollars. Also prepare any necessary adjusting entries at December 31 caused by fluctuations in the value of the lira. Assume that the company uses a perpetual inventory system. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the purchase for equipment

Record the payment for equipment purchased on February 1st

Record the purchase of inventory

Record the sales

Record the cost of goods sold

Record the collection from accounts receivable

Record the payment for inventory purchased on June 1st

Record the adjustment to the value of the lira payable

Record the adjustment for the lira receivable

Record the remaining collection from August sales

Record the remaining payment for June purchase

Bartlett Company, headquartered in Cincinnati, Ohio, has occasional transactions with companies in a foreign country whose currency is the lira.

Explanation / Answer

Amt in Lira Amt $ $ /Lira Date   Account Title   Dr   Cr   Dr   Cr                  0.48 Feb 1. Equipment                  54,000            25,920 Accounts Payable                54,000               25,920 April 1. Accounts Payable                54,000            25,920                0.49 Cash                  54,000               26,460 Realized Foreign Exchange Loss                  540 June 1. Inventory                  72,000            36,720                0.51 Accounts Payable                72,000               36,720 Aug 1. Accounts Receivable                54,000            28,080                0.52 Sales Revenue                54,000               28,080 Inventory                  50,400         25,704.00                0.51 Cost Of Goods Sold                50,400            25,704 . Oct 1. Accounts Receivable                43,200               22,464                0.53 Cash                43,200            22,896 Realized Foreign Exchange Gain                     432 Nov 1. Accounts Payable                48,000            24,480                0.54 Cash                48,000               25,920 Realized Foreign Exchange Loss               1,440 Feb 1. Accounts Receivable                10,800                 5,616                0.58 Cash                10,800               6,264 Realized Foreign Exchange Gain                     648 Mar 1. Accounts Payable                24,000            12,240                0.59 Cash                24,000               14,160 Realized Foreign Exchange Loss               1,920

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