Reference no: EM132723807

Swarovski Jewels Inc., a Philippine dealer of jewelries has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. For each of the following independent case, determine the December 2009, year-end balance in the appropriate accounts for the case.

Case 1: On November 2, 2009, Swarovski Jewels Inc purchased goods from Hongkong at a price of 40,000 Hongkong dollars when the direct exchange rate was 1 Hkg$ = P4.50. The account has not been settled as of December 31, 2009 when the exchange rate has decreased to 1Hkg$ = P4.00.

Case 2: On November 28, 2009, Swarovski Jewels Inc sold goods to a Taiwan company at a price of 20,000 NT Dollars when the direct exchange rate was 1 NT Dollar = P1.80. The account has not been settled as of December 31, 2009 when the exchange rate has increased to 1 NT Dollar = P1.90.

Case 3: On December 1, 2009, Swarovski Jewels Inc purchased goods from Japan at a price of 60,000 yen when the direct exchange rate was 1 yen = P.40. The account has not been settled as of December 2009 when the exchange rate has increased to 1 yen = P.45.

Case 4: On December 1, 2009, Swarovski Jewels Inc sold goods to Indonesian Company at a price of 2,500,000 Baht when the direct exchange rate was 1 Baht = P.003. The account has not been settled as of December 31, 2009 when the exchange rate has decreased to 1 Baht = P.0025.

Required:

Problem 1: Provide the December 31, 2009, year-end balances on the records of Swarovski Jewels Inc, Inc