Reference no: EM132535483

Question - Super Computers is a U.S. Company that manufactures portable personal computers. Many of the components for the computers are purchased abroad, and the finished product is sold in foreign countries as well as in the U.S. Among the recent transactions of Super Computers are the following:

Oct 28: Purchased from Mitsubishi Japan 40,000 disk drives. The purchase price was Japanese Yen 360,000,000 payable in 30 days. Current exchange rate, $ 0.0105 per yen.

Nov 9: Sold 1,400 personal computers to the British Bank for Pound Sterling 1,209,000 due in 30 days. The cost of the computers was $ 1,036,000. Current exchange rate, $ 1.65 per British pound.

Nov 27: Issued a cheque to Inland Bank for $ 3,672,000 in full payment of accounts payable to Mitsubishi Japan.

Dec 2: Purchased 20,000 gray-scale monitors from German Optical for Euro 2,400,000 payable in 60 days. Current exchange rate, $ 0.7030 per euro.

Dec 9: Collected dollar-equivalent of 1,209,000-pound sterling from the British Bank. Current exchange rate $ 1.63 per pound sterling.

Dec 11: Sold 20,000 personal computers to Computique, a Swiss retail chain, for Swiss Francs 47,500,000 due in 30 days. Current exchange rate, $ 0.6000 per franc. The cost of the Computers are $ 14,800,000.

Required -

1. Prepare journal entries to record the above transactions.

2. Prepare the adjusting entries needed at Dec 31. Year-end exchange rates, $0.7000 per euro and $0.5980 per Swiss franc.

3. Compute the exchange rate for the yen, stated in U.S. dollars, on November 27.

4. Compute the unit sales price of computers in U.S. dollars in the Nov 9 sales Transaction.