the marionettes company is noted for an exceptionally the marionettes company is
ID: 2437432 • Letter: T
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the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally the marionettes company is noted for an exceptionally P12-5 Denominated sales and purchase transaction entries An American company Pete Inc. sold its inventory to Ping Pte. Ltd for $20,000 Singapore Dolla (SGD), and to SatriaTbk. for 300,000,000 rupiah on December 1,2014-when the spot rate for SGD S0.798 and for rupiah is S0.0000875. At the same time, Pete purchased merchandise from Patay 500,000 baht, when the spot rate for baht is S0.031. Pete closed its books on December 31, 2014,and collected the total sale and settlement amount on January 15, 2015 Spot rates are given as follows: Dec 31, 2014 Jan 15, 2015 $o.802 Singaporean Dollars Indonesian Rupiah Thai Baht S0.76 0.0000911 $0.OO00805 0.029 0.0318 REQUIRED: Prepare the required journal entries to account for the transactions aboveExplanation / Answer
In the Books of Pete Inc Date Dr/Cr Debit Amount $ Credit amount $ 1 Dec 2014 Debit Trade receivable (Ping Pte Ltd) 15960 Credit Sales 15960 (Being sale of goods of SGD 20000 recorded at exchange rate of 0.798) 1 Dec 2014 Debit Trade receivable (Satira Tbk) 26,250 Credit Sales 26,250 (Being sale of goods of rupia 300000000 recorded at exchange rate of 0.0000875) 1 Dec 2014 Debit Purchases 15,500 Credit Trade Payable (Patay Inc) 15,500 (Being purchase of goods of thai bahat 500000 recorded at exchange rate of 0.031) 31 Dec 2014 Debit Foreign exchange loss 760 Credit Trade receivable (Ping Pte Ltd) 760 (Being foreign exchange loss on reinstatement of trade receivables recorded at closing rate 20000*(0.798-0.76) 31 Dec 2014 Debit Trade receivable (Satira Tbk) 1,080 Credit Foreign exchange Gain 1,080 (Being foreign exchange gain on reinstatement of trade receivables recorded at closing rate 300000000*(0.0000875-0.0000911) 31 Dec 2014 Debit Trade Payable (Patay Inc) 1,000 Credit Foreign exchange Gain 1,000 (Being foreign exchange gain on reinstatement of trade receivables recorded at closing rate 500000*(0.031-0.029) 15 Jan 2015 Debit Cash/bank 16040 Credit Trade receivable (Ping Pte Ltd) 15200 Credit Foreign exchange Gain 840 (Being cash received from trade receivable and balance amount is reconnised as realised exchange gain) 15 Jan 2015 Debit Cash/bank 24,150 Debit Foreign exchange loss 3,180 Credit Trade receivable (Satira Tbk) 27,330 (Being cash received from trade receivable and balance amount is reconnised as realised exchange loss) 15 Jan 2015 Debit Trade Payable (Patay Inc) 14,500 Debit Foreign exchange loss 1,400 Credit Cash/bank 15,900 (Being cash paid to trade payable and balance amount is reconnised as realised exchange loss)
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