Ciara Jane P.

Bautista

BSA601-A

Maria Company

20x1
Nov. 10 Cash ₱ 200,000
Packing Credit Line ₱ 200,000
To record availment of packing credit line

Nov. 15 Accounts Receivable 988,000

Sales 988,000
To record shipment of merchandise $20,000 x P 49.40

Dec. 31 Accounts Receivable 4,000

Foreign Exchange Gain 4,000
To adjust the acceptance payable and recognize
forex loss for the increase in the exchange rate
$20,000 x (49.60 - 49.40)

20x2
Jan. 25 Cash 998,000
Accounts Receivable 992,000
Foreign Exchange Gain 6,000
To record settlement received from BPI for the LC
and recognition of the forex gain.
Bohol Corporation

20x1 Important Transactions

Dec.1 Inventory ₱227,950
AccountsPayable ₱227,950
To record purchase of inventory (485,000 x P 0.47)

Dec. 31 Accounts payable 4,850

Forex gain 4,850
To adjust accounts payable for the year end
spot rate (485,000 x P 0.01)

20x2
Jan. 30 Accounts Payable -FC 223,100
Forex Loss 14,550
Foreign Currency 237,650
To record the settlement of Accounts Payable
at P 0.49
Relating to Forward Contract
20x1
Dec. 1 Forward Contract Receivable - FC 247,350
Forward Contract Payable 247,350
To record purchase of forward contract (485,000 x P 0.50

Dec. 31 Loss on Forward Contract 4,850

Forward contract
receivable 4,850
To record decrease in the value of forward
contract
(485,000 x P 0.01)

20x2
Jan. 30 Foreign Currency 237,650
Loss on foreign currency 4,850
Forward Contract
Receivable 242,500
To record receivable of 485,000 yen according to
FC

Jan. 30 Forward Contract Payable 247,350

Cash 247,350
To record settlement