Romel B.

Bucaloy

BSA Block 28

Accounting 6: Assignment #1
1. P195,000-P187,000 = P8,000

2. 7/1/x4 Cash 420,000

Accounts Payable 420,000

12/31/x4 Accounts Payable 372,000

Forex Gain 372,000

7/1/x5 Accounts Payable 48,000

Loss 512,000-answer
Cash 560,000

3. Loss, P700 on both year ended.

Machine 75,530
Accounts Payable 75,530

Loss 700
Accounts Payable 700

Accounts Payable 76230

Loss 700
Cash 76930
4. B.
5. P22, 500 (using only the spot rate) (750,000*1.58-750,000*1.55)
6. B.
7. P8,000 loss –importer’s pov (200000*.24-200000*.20)
8. P6,000 loss-exporter’s pov (200000*.93-200000*.90)

9. P3,770,000 (13,000,000*.29)
10. P520,000 gain
11. P3,250,000 (13,000,000*.25)
Journal Entries
Inventory 3770000
Accounts Payable 3770000
 Accounts Payable 520,000
FOREX gain
520,000

Accounts Payable 3,250,000

Cash 3,250,000

12. P174,752 (172,000*1.016)

13. P1,032 gain (175,784-174,752)
14. P175,784 (172,000*1.022)
15. P400,000 gain (decrease in Bonds Payable) (20,000,000*1.50-20,000,000*1.48)
16. P1,000,000 loss (increase in Bonds Payable) (20,000,000*1.50-20,000,000*1.45)
17. P273,840 (240,000*1.1410)
18. P274,800 (240,000*1.1450)
19. P720 gain (240,000*1.1450)- (240,000*1.1420)
20. P960 gain (240,000*1.1420)- (240,000*1.1410)+ (240,000*1.1450)- (240,000*1.1420)
21. 20x3- P2000 gain (336,000-334,000)
20x4- P1000 gain (335,000-334,000)
22. P6,000 loss (300,000*1.62)- (300,000*1.60)
23. P486,000 (300,000*1.62)
24. C.
25. B.
26. Arrival: 1 Singaporean Dollar = 33 Philippine Pesos
Departure: 1 Singaporean Dollar = 32.5 Philippine Pesos
27. The peso strengthened because it needs more Singaporean Dollar to convert to match the
value of Pesos which is 1:33 on arrival than on 1:32.5 on departure.
28. On CC’s point of view, CC will have a FOREX loss because the value of Singaporean
Dollar that CC converts on Philippines Pesos weakened causing CC less Philippine Pesos
if CC converted his Singaporean Dollar on his departure.