Inventory price

Date Spot rate Total

(in Thai baht)
Oct 15, 2016 ($ 0.029) 245,000 ($ 7,105)
Dec 31, 2016 ($ 0.033) 245,000 ($ 8,085)
Jan 15, 2017 ($ 0.030) 245,000 ($ 7,350)

JOURNAL ENTRY Rise Corporation

October 15, 2016 Income Statement (Partial)
Accounts Receivable ($ 7,105) For the Year Ended December 31, 2016
Sales ($ 7,105) Exchange Gain ($ 980)
(To record sales to Chai company, spot rate $0,029)
Rise Corporation
December 31, 2016 Income Statement (Partial)
Accounts Receivable ($ 980) For the Year Ended December 31, 2017
Exchange Gain ($ 980) Exchange Gain ($ 245)
(To adjust accounts receivable at year-end, change in spot rate $0.033 - $0.029)

Jan 15 2017
Cash ($ 7,350)
Exchange Loss ($ 735)
Accounts Receivable ($ 8,085)
(To record full collection from Chai company, spot rate $0.030 and recognize
exchange loss due to change in spot rate $0.033 - $0.030)
 Merchandise 1,000,000 yen Merchandise 1,000,000 yen

02/11/16 31/12/16 31/01/17 02/11/16 31/12/16 31/01/17

Spot rate ($ 0.0078) ($ 0.0076) ($ 0.0075) Spot rate ($ 0.0078) ($ 0.0076) ($ 0.0075)
30-day forward rate ($ 0.0079) ($ 0.0078) ($ 0.0076) 30-day forward rate ($ 0.0079) ($ 0.0078) ($ 0.0076)
90-day forward rate ($ 0.0080) ($ 0.0079) ($ 0.0078) 90-day forward rate ($ 0.0080) ($ 0.0079) ($ 0.0078)

November 2, 2016 January 31, 2017 7800 7600 7500

Merchandise Inventory ($ 7,800) Account Payable ($ 100) 7900 7800 7600
Account Payable ($ 7,800) Exchange Gain ($ 100) 8000 7900 7800
(To record purchase on merchandise from Mat; 1.000.000 yen x $0.0078) (To adjust account payables to Jan 31 spot exchange rate; 1.000.000 yen x
($0.0076 - $0.0075)) Dec 31 198
Contract Receivable ($ 8,000) Jan 31 -300
Contract Payable ($ 8,000) Account Payable ($ 7,500) -500
(To record contract to buy 1.000.000 yen in 90 days; 1.000.000 Cash ($ 7,500)
yen x $0.0080) (To record payment to Mat; 1.000.000 yen x $0.0075)

December 31, 2016 Cash ($ 7,500)

Account Payable ($ 200) Exchange Loss ($ 302)
Exchange Gain ($ 200) Contract Receivable ($ 7,802)
(To adjust account payables to year-end spot exchange rate; (To record receipt of 1.000.000 yen from exchange broker
1.000.000 yen x ($0.0078 - $0.0076))
Contract Payable ($ 8,000)
Exchange Loss ($ 198) Cash ($ 8,000)
Contract Receivable ($ 198) (To record payment to exchange broker; 1.000.000 yen x $0.0080)
(To adjust contract receivable to exchange broker to year-end forward
exchange rate. Receivable: (1.000.000 yen x ($0.0080 - $0.0078))/(1.01))