Reference no: EM131220082
Assignment Choice: Sale Journal Entries
Garden Grove Corporation made a sale to a foreign customer on September 15, Year 1, for 100,000 foreign currency units (FCU). Payment was received on October 15, Year 1. The following exchange rates apply:
Date U.S. Dollar per FCU
September 15, Year 1 . . . . . . . . $0.40
September 30, Year 1 . . . . . . . . . 0.42
October 15, Year 1 . . . . . . . . . . 0.37
Using Excel, prepare all journal entries for Garden Grove Corporation in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements.
In addition, write a 1-page response to the following questions:
• Why do currency differences affect foreign exchange reporting?
• What difference has the introduction of comprehensive income statements made to U.S. accounting for foreign exchange?
• Why do you think it has been so difficult for accounting regulators to deal with accounting for foreign exchange over the last 25 years?
Insert your Excel spreadsheet into your Word document so that you only have one document to submit. Support your statements with a minimum of two sources in addition to your textbook.
|
In conjunction with transaction
: On March 15, Chief Company acquired 20,000 shares of its own $2 par value common shares at a cost of $17 per share. Chief originally issued the shares at $12 per share. On July 5, Chief sold 7,000 of the shares back in the open market at a price of $..
|
|
Adjust and the interest rates
: Take a look at the site, Federal Reserve website, and tell us more about the link between Inflation, the FED, the interest rates they adjust and the interest rates we pay on our vehicles? Please use your research at the website ( www.federalre..
|
|
Why might a company prefer a foreign currency option
: International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment?
|
|
Is this accounting for the signing bonus acceptable
: A small publishing company signs an aspiring Olympic gymnast to write a book. The company pays the gymnast $500,000 to sign plus future book royalties. A note to the company's financial statements says that "prepaid expenses include $500,000 in autho..
|
|
Why do currency difference affect foreign exchange reporting
: Why do currency differences affect foreign exchange reporting? What difference has the introduction of comprehensive income statements made to U.S. accounting for foreign exchange?
|
|
Provide suggestions for overcoming these pitfalls
: Event logs provide investigators with some of the most valuable information they will recover during an investigation. However, several pitfalls are also associated with event logs. For this discussion, provide an overview of these pitfalls. In ad..
|
|
Process-costing steps-physical flow of units-equivalent unit
: Mike's manufactures bikes and has two departments, production department and testing department. This problem focuses on the production department. The process-costing system at Mike's has a single direct-cost category (Direct material) and a single ..
|
|
What else can manchester do to improve its cash flow
: As we see in the budgeted assumptions, Manchester wants to improve its cash flow by concentrating on collecting receivables sooner in the second half of 2016. What else can Manchester do to improve its cash flow?
|
|
How should the us respond to such provocations
: Consider the accusations surrounding Russia and its suspected covert efforts to sway the November US election. To what extent does this represent a crime or attack? How does this represent an evolution in the use of cyberwarfare? How should the US..
|