Agnes Monica Herman Tugas Week 8

130318123 Akuntansi Keuangan Lanjutan I

KP B P 12 – 4

1. Determine the net exchange gain or loss that should be reflected in Lin’s income statement for
2016 from year – end exchange adjustments.
Answer :
Account Receivable Closing Balance Gain/Loss
U.S. Dollars $ 28.500 -
Swedish Krona (20.000 x $ 0.52) $ 10.400 ($ 1.400)
British Pounds (25.000 x $ 1.65) $ 41.250 $ 250
Account Receivable Loss ($ 1.150)

Account Payable Closing Balance Gain/Loss

U.S. Dollars $ 6.850 -
Canadian Dollars (10.000 x $ 0.70) $ 7.000 $ 600
British Pounds (15.000 x $ 1.65) $ 24.750 ($ 300)
Account Payable Gain $ 300

Net Exchange Loss = $ 1.150 - $ 300 = $ 850

2. Determine the amount at which the accounts receivable and accounts payable should be
included in Lin’s December 31, 2016, balance sheet.
Answer :
Account Receivable = $ 81.300 - $ 1.150 = $ 80.150
Account Payable = $ 38.900 - $ 300 = $ 38.600
3. Prepare journal entries to record collection of the receivables in 2017 when the spot rates for
Swedish Krona and British pounds are $0.55 and $1.63, respectively.
Answer :
a. Cash $ 28.500
Account Receivable – U.S $ 28.500
b. Cash (20.000 x $ 0.55) $ 11.000
Foreign Exchange Gain $ 600
Account Receivable – Swedish $ 10.400
c. Cash (25.000 x $ 1.63) $ 40.750
Foreign Exchange Loss $ 500
Account Receivable – British $ 41.250
4. Prepare journal entries to record settlement of the accounts payable in 2017 when the spot
rates for Canadian dollars and British pounds are $0.69 and $1.62, respectively.
Answer :
a. Account Payable – U.S $ 6.850
Cash $ 6.850
b. Account Payable – Canadian $ 7.000
Foreign Exchange Gain $ 100
Cash (10.000 x $ 0.69) $ 6.900
c. Account Payable – British $ 24.750
Foreign Exchange Gain $ 450
Cash (15.000 x $ 1.62) $ 24.300