E12-2 Importing and Exporting Journal Entries

During December of the current year, Teletex System, Inc. a company based in Seattle.
Washington, entered into the following transactions :
Dec 10 Sold seven office computer to a company located in Colombia for 8.541.000 pesos.
On this date, the spot rate was 365 pesos per U.S. dolar.
Dec 12 Purchases computer chips from a company domiciled in Taiwan. The contract was
denominated in 500.000 Taiwan dollars. The direct exchange spot rate on this date
was $.0391.
Required :
A. Prepare journal entries to record the transactions above on the books of Teletex
system,Inc. The company uses a periodic inventory system.
B. Prepare journal entries necessary to adjust the accounts as of December 31. Assume
that on December 31 the direct exchange rates were as follows :
Colombia peso
$.00268
Taiwan dollar
$.0351
C. Prepare journal entries to record settlement of both open accounts on January 10.
Assume that the direct exchange rates on the settlemen dates were as follows :
Colombia peso
$.00320
Taiwan dollar
$.0398
D. Prepare journal entries to record the December 10 transaction, adjust the accounting
on December 31 and record settlement of the account on January 10, assume the
same exchange rates as those given.
Jawaban :
A. 10/12
Accounts Receivable(m.a) (8,541,000/365) 23,400
Sales
23,400
12/12
Purchse price in Taiwan dollars
500.000
Direct exchange rate to U.S dollars $.0391
Purchases Price
19.550
Purchases
19,550
Accounts Payable (500,000 x $.0391)
B. 31/12
Receivable
Direct exchange rate to U.S dollars
Receivable in U.S dollars
Balance in receivable
Transaction loss
Transaction Loss

3.541.000
$.00268 x
22.890
23.400 510
510

19,550

Accounts Receivable

510

31/12
Payable in pesos
Direct exchange rate to U.S. dollar
Payable in U.S. dollars
Balance in payable
Transaction gain

500.000
$.0351 x
17.550
19.550 2.000

Accounts Payable
2.000
Transaction gain
2.000
C. 10/1
Cash (8,541,000$.00320)
27,331
Accounts Receivable ($23,400 - $510)
22,890
Transaction Gain
4,441
10/1
Transaction Loss
2,350
Accounts Payable ($19,550 - $2,000) 17,550
Cash (500,000$.0398)
D. 10/12
Accounts Receivable
Sales

19,900

23,400
23,400

31/12
No entry required.
10/1
Cash

23,400
Accounts Receivable

23,400