Reference no: EM133013762
Question - ABC Corp., a U.S. Company, imports and exports various items. The company uses a periodic inventory system. During June, the company entered into the following transactions. All rate quotations are direct exchange rates.
June 3 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,600,000 yen. On this date, the exchange rate for the yen was 0.0092.
June 5 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $2,800. The exchange rate for euros was $1.13.
June 9 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,800 U.S. dollars and the exchange rate for the New Zealand dollar was $.76.
June 11 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 7,500 euros. The exchange rate for euro was $1.13.
June 18 Settled the accounts payable with the Belgium manufacturer. The exchange rate was $1.12.
June 22 Received full payment from the New Zealand retailer. The exchange rate was $.74.
June 30 Paid 1,000,000 yen on account to the wholesaler for purchases made on June 3. The exchange rate on this date was $.0093.
Required - Prepare journal entries on the books of ABC Corp. to record the transactions listed above.