Required information Problem 15-6AA Foreign currency transactions LO C3 [The fol

Question

Required information Problem 15-6AA Foreign currency transactions LO C3 [The following information applies to the questions displayed below.] Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2017 and 2018. 2017 Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $5,938 cash. The exchange rate for pesos is July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 1.5 million yen is to be paid Oct. 14 Sold merchandise for 19,000 pounds to Smithers Ltd. of Great Britain, payment in full to be Nov. 18 Received Sumito's payment in yen for its July 21 purchase and immediately exchanged the yen for Dec. 20 Sold merchandise for 17,000 ringgits to Hamid Albar of Malaysia, payment in full to be received in Dec. 31 Recorded adjusting entries to recognize exchange gains or losses on Doering's annual financial $0.1043 on this day. 120 days from the date of sale. The exchange rate for yen is $0.0094 on this day received in 90 days. The exchange rate for pounds is $1.4566 on this day. dollars. The exchange rate for yen is $0.0092 on this day. 30 days. On this day, the exchange rate for ringgits is $0.4501. statements. Rates for exchanging foreign currencies on this day follow. Pesos (Mexico) Yen (Japan) Pounds (Britain) ringgits (Malaysia) $0.1055 0.0093 1.4620 0.4456 2018 Jan. 12 Received ful1 payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The exchange rate for pounds is $1.4699 on this day Jan 19 Received Hamid Albar's full payment in ringgits for the December 20 sale and immediately exchanged the ringgits for dollars. The exchange rate for ringgits is $0.4420 on this day

Explanation / Answer

No Date General Journal Debit Credit 1) Apr 8, 2017 Cash $5,938.00 Sales $5,938.00 2) Jul 21, 2017 Accounts receivable—Sumito $14,100.00 Sales $14,100.00 (1,500,000 yen × $0.0094/yen) 3) Oct 14, 2017 Accounts receivable—Smithers $27,675.40 Sales $27,675.40 (£19,000 × $1.4566/£) 4) Nov 18, 2017 Cash $13,800.00 Foreign exchange loss $300.00 Accounts receivable—Sumito $14,100.00 (1,500,000 yen × $0.0092/yen) 5) Dec 20, 2017 Accounts receivable—Hamid Albar $7,651.70 Sales $7,651.70 (17,000 ringgits × $0.4501/ringgits) 6) Dec 31, 2017 Accounts receivable—Smithers $102.60 Foreign exchange gain $102.60 (£19,000 × $1.4566/£) - (£19,000 × $1.4620/£) 7) Dec 31, 2017 Foreign exchange loss $76.50 Accounts receivable—Hamid Albar $76.50 (17,000 ringgits × $0.4501/ringgits)-(17,000 ringgits × $0.4456/ringgits) Part 2 1) Dec 31, 2017 Cash (£19,000 × $1.4699/£) $27,928.10 Accounts receivable—Smithers $27,778.00 Foreign exchange gain $150.10 2) Dec 31, 2017 Cash (17,000 ringgits × $0.4420/ringgits) $7,514.00 Foreign exchange loss $61.20 Accounts receivable—Hamid Albar $7,575.20

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