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A.
1. What is the carrying amount of monetary asset on December 31, 2020?
Accounts Receivable, foreign $4,500
currency
Buying Spot Rate, December 31, x P45
2020
Carrying amount of Accounts P202,500
Receivable, December 31, 2020
3. In the 2020 Income Statement, what amount of net foreign exchange gain or loss will be reported by
Mia Corporation?
Selling spot rate, December P47
31, 2020
Selling spot rate, November 42
1, 2020
Increase in selling spot rate P5
Accounts Payable, foreign $3,000
currency
Foreign Exchange Gain (P15,000)
(Loss)
Buying spot rate, December P45
31, 2020
Buying spot rate, December 39
1, 2020
Increase in buying spot rate P6
Accounts Receivable, foreign $4,500
currency
Foreign Exchange Gain 27,000
(Loss)
Net Foreign Exchange Gain P12,000
(Loss)
B.
1. Translated amount of net income
Sales (in yen) 300,000
Sales Returns and Allowances (2,000)
Net Sales 298,000
Cost of Goods Sold (210,000)
Gross Profit 88,000
Less:
Selling Expenses 5,000
Administrative 7,000
Expenses
Other Expenses 5,000 17,000
Net Income (in yen) 71,000
Average exchange rate x P0.52
Translated amount of net P36,920
income
C.
1. Compute the net foreign exchange gain or loss upon settlement.
Spot rate Increase Foreign Forex
(Decrea Currency Gain
se) Units (Loss
)
TD SD
PHP TO 6.57 6.48 (0.09) 8,000 (720)
HKD
PHP TO 12.46 12.87 0.41 3,600 1,476
MR
PHP TO 37.83 37.98 0.15 5,000 750
BD
PHP TO IR 0.003 0.0030 0.0007 10,000,0 7,000
7 00
Net Foreign Exchange Gain (Loss) (5,49
4)