Question 6 (of 6) 8.35 points Exerclse 15-15A Foreign currency transactions LO C

Question

Question 6 (of 6) 8.35 points Exerclse 15-15A Foreign currency transactions LO C3 Leigh of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2015, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 16,000 pounds. The exchange rate on that day for £1 was $2.0399. On December 31,2015, when Leigh ed its financial statements, the rate was £1 for $2.0338, Bronson paid its bill in full on January 15 2016, at which time the exchange rate was E1 for $2.0358 Leigh immediately exchanged the 1 pounds for U.S. dollars. Prepare Leigh's journal entries on December 16, December 31, and January 15, (Round your intermediate calculations and final answers to the nearest dollar amount.) View transaction list Journal entry worksheet On December 16, 2015, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 16,000 pounds. The exchange rate on that day for £1 was $2.0399 Note: Enter debits before credits General Journal DebitCredit Date Dec 16, 2015 View general journal Clear entry Record entry

Explanation / Answer

Answer:

Date

General Journal

Debit $

Credit $

Dec-16,2015

Account Receivable-Bronson Limited

32638.4

Sales Revenue

32638.4

(to record the sales at £ 16,0000 ,at the
exchange rate equals £1=2.0399)
=16000*2.0399 =32638.4

­­­­­­­­­­­­­­­­­­-___________________________________________

Date

General Journal

Debit $

Credit $

Dec-31,2015

foreign exchange Loss

97.6

To Account Receivable-Bronson Limited

97.6

(to record the decrees in British pound for receivable)

exchange rate equals £1=2.0338)
=32638.4 -(16000*2.0399) =97.6

________________________________

Date

General Journal

Debit $

Credit $

Jan-15-2016

Cash (16000*2.0358)

32572.8

To foreign exchange gain

32

Account Receivable-Bronson Limited

32540.8

(to record the Receipt of foreign currency)

Date

General Journal

Debit $

Credit $

Dec-16,2015

Account Receivable-Bronson Limited

32638.4

Sales Revenue

32638.4

(to record the sales at £ 16,0000 ,at the
exchange rate equals £1=2.0399)
=16000*2.0399 =32638.4

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