On October 1st 2017 the Memphis Company purchases 100 chairs from the Mexican Co

Question

On October 1st 2017 the Memphis Company purchases 100 chairs from the Mexican Company for 100,000 pesos (1000 per chair) Memphis Company must pay the Mexican Company on May 1st 2018.   Memphis Company prepares quarterly statements on March 31, June 30, September 30 and December 31 Additional information is as follows: Oct. 1 2017 1 peso = $0.10 Dec. 31 2017 1 peso = $0.11 March 31 2018 1 peso = $0.13 May 1 2018 1 peso = $0.11 Required;   Make the necessary journal entries for the Memphis Company on: October 1 2017 December 31 2018 March 31 2018 May 1 2018 On October 1st 2017 the Memphis Company purchases 100 chairs from the Mexican Company for 100,000 pesos (1000 per chair) Memphis Company must pay the Mexican Company on May 1st 2018.   Memphis Company prepares quarterly statements on March 31, June 30, September 30 and December 31 Additional information is as follows: Oct. 1 2017 1 peso = $0.10 Dec. 31 2017 1 peso = $0.11 March 31 2018 1 peso = $0.13 May 1 2018 1 peso = $0.11 Required;   Make the necessary journal entries for the Memphis Company on: October 1 2017 December 31 2018 March 31 2018 May 1 2018

Explanation / Answer

October 1st

Inventory------------------------Dr $10,000

To Mexican Co. $10,000

December 31st

Unrealised exchange loss----Dr $1,000

To Mexican Co. $1,000

March 31st

Unrealised exchange loss---Dr $2,000

To Mexican Co. $2,000

May 1

Mexican Co.--------------------Dr $2,000

To unrealised exchange loss $2,000

Mexican Co.-------------------Dr $11,000

Realised exchange loss----Dr $ 1,000

To Unrealised exchange loss $1,000

To cash $ 11,000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.