Questions from Advanced Accounting

Q: 37. On August 1, Pure Joy Corporation (a U

37. On August 1, Pure Joy Corporation (a U.S.-based importer) placed an order to purchase merchandise from a foreign supplier at a price of 400,000 pounds. Pure Joy will receive and make payment for t...

Q: On June 1, Parker-Mae Corporation (a U.

On June 1, Parker-Mae Corporation (a U.S.-based company) received an order to sell goods to a foreign customer at a price of 100,000 francs. Parker-Mae will ship the goods and receive payment in three...

Q: Brief, Inc., had a receivable from a foreign customer that

Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2020, Brief correctly included this receivable for 200,000 local currency units...

Q: Amaretta Company (a U.S.-based company) ordered

Amaretta Company (a U.S.-based company) ordered merchandise from a foreign supplier on November 20 at a price of 1,000,000 rupees when the spot rate was $0.050 per rupee. Delivery and payment were sch...

Q: Based on past experience, Maas Corp. (a U.

Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,000,000 francs on March 15, 2021. To hedge this forecasted transact...

Q: Place Company owns a majority voting interest in Sassano, Inc.

Place Company owns a majority voting interest in Sassano, Inc. On January 1, 2019, Place issued $1,000,000 of 11 percent 10-year bonds at $943,497.77 to yield 12 percent. On January 1, 2021, Sassano p...

Q: Pacifico Company, a U.S.-based importer of beer

Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,000 cases of Oktoberfest- style beer from a German supplier for 50,000 euros. Relevant U.S. dollar exchange rates for the euro are...

Q: On July 1, 2020, Mifflin Company borrowed 200,000

On July 1, 2020, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent of...

Q: Grace Co. had a Chinese yuan payable resulting from imports from

Grace Co. had a Chinese yuan payable resulting from imports from China and a Mexican peso receivable resulting from exports to Mexico. Grace recorded foreign exchange losses related to both its yuan p...

Q: Matthias Corp. had the following foreign currency transactions during 2020:

Matthias Corp. had the following foreign currency transactions during 2020: ∙ Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $60,000 and paid the invoice...