1 Record the foreign sale and foreign currency receivable 2

1) Record the foreign sale and foreign currency receivable

2) Record the entry to revalue the foreign currency receivable to the U.S. dollar equivalent value.

3) Record the entry to collect the accounts receivable in Danish kroner.

1) Record the foreign sale and foreign currency receivable.

2) Record the entry for the 60-day forward exchange contract signed to sell British pounds.

3) Record the entry to revalue the foreign currency receivable.

4) Record the entry to revalue the foreign currency payable

5) Record the receipt of British pounds from the customer

6) Record the pounds delivered to a broker

7) Record the receipt of U.S. dollars from the broker in accordance with the forward contract.

1) Record the sale to a Canadian firm denominated in Canadian dollars.

2) Record the entry for a 60-day forward contract signed to sell Canadian dollars.

3) Record the revaluation of the foreign currency receivable to the equivalent U.S. dollar value.

4) Record the revaluation of the foreign currency payable

5) Record the receipt of Canadian dollars from the customer.

6) Record the delivery of Canadian dollars to a broker.

7) Record the receipt of U.S. dollars from the broker in accordance with the forward contract rate.

Side Notes: Please answer everything and neatly

Tex Hardware sells many of its products overseas. The following are some selected transactions. 1. Tex sold electronic subassemblies to a firm in Denmark for 160,000 Danish kroner (Dkr) on June 6, when the exchange rate was Dkr 1- $0.1705. Collection was made on July 3 when the rate was Dkr 1 $0.1708 2. On July 22, Tex sold copper fittings to a company in London for £38,000 with payment due on September 20. Also, on July 22, Tex entered into a 60-day forward contract to sell £38,000 at a forward rate of £1 = $1.630. The forward contract is not designated as a hedge. The spot rates follow: July 22 September 20 1-$1.580 E1 $1.612 3. Tex sold storage devices to a Canadian firm for C$72,000 (Canadian dollars) on October 11, with payment due on November 10. On October 11, Tex entered into a 30-day forward contract to sell Canadian dollars at a forward rate of C$1 $0.730. The forward contract is not designated as a hedge. The spot rates were as follows: October 11 November 10 C$1$0.735 C$1 = $0.732 Required: Prepare journal entries to record Tex\'s foreign sales of its products, use of forward contracts, and settlements of the receivables. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.)

Solution

Date General Journal Debit Amount Credit Amount 1 Jun-06 Accounts Receivable (Dkr) 27280        To Sales Revenues 27280 (Foreign Sale and Foreign Currency Receivables) $27,280 = Dkr160,000 * $0.1705 Jun-03 Accounts Receivable (Dkr) $48      To Foreign Currency Transaction gain $48 (Revalue foreign currency receivable to USD equivalent Value: $27,328 = Dkr160,000 * $0.1708 (July 3 spot rate) $27,280 = Dkr160,000 * $0.1705   (June 6 Spot rate) $48 = Dkr160000 * (0.1708-0.1705) Foreign Currency Units (Dkr) $27,328       To Accounts Receivable $27,328 (Collect accounts receivables in Dkr) 2 Jul-22 Accounts Receivable (£) 60040       To sales Revenue 60040 (Foreign Sale and foreign currency receivable) $60,040 = £38,000 * $1.580 Dollars Receivable from Exchange Broker($) 61940       To Foreign currency Payable to Exchange Broker (£) 61940 (Signed 60-day forward contract to sell pounds) $61,940 = £38,000 * $1.630 forward rate Sep-20 Accounts Receivable (£) $1,216       To foreign currency transaction gain $1,216 (Revalue foreign currency receivable) $61,256 = £38,000 * $1.612 forward rate $60,040 = £38,000 * $1.580 $1,216 = £38,000 * ($1.612-$1.580) Foreign Currency Payable to Exchange Broker(£) $684      To Foreign Currency Transaction Gain $684 (Revalue foreign currency payable) $61,256 = £38,000 * $1.612 forward rate $61,940 = £38,000 * $1.630 forward rate $684 = £38,000 * ($1.612-$1.630) Foreign Currency Units (£) $61,256      To Accounts Receivable(£) $61,256 (Receive Pounds from customer) Foreign currency payable to exchange broker (£) $61,256      To foreign currency units(£) $61,256 (Deliver Pounds to Broker) Cash 61940     To Dollars Receivable from exchange Broker ($) 61940 (Receive USD from broker in According to forward contract) 3 Oct-11 Accounts Receivable (C$) 52920 Sales Revenue 52920 (Sales to Canadian firm denominated in Canadian dollars) C$52,920 = C$72,000 * $0.735 Dollars Receivable from Exchange Broker($) 52560      To Foreign Currency Payable to Exchange Broker(C$) 52560 $52,560 = C$72,000 * 0.730 Nov-10 Foreign Currency Transaction Loss $216      Accounts Receivable $216 (Revalue foreign Currency receivable to equivalent USD value $52,704 = C$72,000 * $0.732 C$52,920 = C$72,000 * $0.735 $216 = C$72,000 * (0.735-0.732) Foreign Currency Transaction Loss $144      To Foreign Currency Payable to Exchange Broker(C$) $144 (Revalue foreign currency payable) $52,704 = C$72,000 * $0.732 $52,560 = C$72,000 * 0.730 $144 = C$72,000 * (0.732-0.730) Foreign Currency Units (£) $52,704      To Accounts Receivable(£) $52,704 (Receive Pounds from customer) Foreign currency payable to exchange broker (£) $52,704      To foreign currency units(£) $52,704 (Deliver Pounds to Broker) Cash 52560     To Dollars Receivable from exchange Broker ($) 52560 (Receive USD from broker in According to forward contract)