Bartlett Company headquartered in Cincinnati Ohio has

occasional transactions with

Bartlett Company, headquartered in Cincinnati, Ohio, has occasional transactions with
companies in a foreign country whose currency is the lira. Prepare journal entries for the
following transactions in U.S. dollars. Also prepare any necessary adjusting entries at
December 31 caused by fluctuations in the value of the lira. Assume that the company uses a
perpetual inventory system.Transactions in 2013February 1 ............ Bought equipment for
40,000 lira on credit.April 1 ................ Paid for the equipment purchased February 1.June 1
................ Bought inventory for 30,000 lira on credit.August 1 ............ Sold 70 percent of
inventory purchased June 1 for 40,000 lira on credit.October 1 ........... Collected 30,000 lira from
the sales made on August 1, 2013.November 1 ........ Paid 20,000 lira on the debts incurred on
June 1, 2013.Transactions in 2014February 1 ........... Collected remaining 10,000 lira from
August 1, 2013, sales.March 1 ............. Paid remaining 10,000 lira on the debts incurred on
June 1, 2013.Currency exchange rates for 1 lira for 2013February 1 ........... $0.44April 1
................ 0.45June 1 ................. 0.47August 1 ............. 0.48October 1 ............ 0.49November
1 ......... 0.50December 31 ........ 0.52Currency exchange rates for 1 lira for 2014February 1
......... $0.54March 1 ............ 0.55View Solution: Bartlett Company headquartered in Cincinnati
Ohio has occasional transactions with
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