Test bank advanced accounting 10e by beams chapter 12

To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 12 Test Bank FOREIGN CURRENCY CONCEPTS AND TRANSACTIONS Multiple Choice Questions LO1 On May 1, 20X3, Emu Corporation purchased merchandise from a Danish firm for 198,000 Danish krone when the spot rate for krone was 5.200 krone per dollar The account payable was denominated in krone Emu settled the account on September when the spot rate for krone was 5.345 krone per dollar How much cash will Emu have to disburse to settle the account? a b c d LO1 $ 37,043.97 $ 38,076.93 $1,029,600.00 $1,058,310.00 Cassowary Corporation’s balance sheet at December 31, 20X3 included a $20,400 account receivable from Quail Corporation of Australia The account receivable was denominated as 30,000 Australian dollars (A$) What entry did Cassowary make on January 16, 20X3 when the account receivable was collected and the exchange rate for A$ was $.67? a Cash 20,100 Accounts Receivable 20,100 b Cash Exchange Loss Accounts Receivable 20,100 300 c Cash 20,400 20,400 Accounts Receivable d Cash 20,400 20,700 Accounts Receivable Exchange Gain ©2009 Pearson Education, Inc publishing as Prentice Hall 12-1 20,400 300 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 The exchange rates between the Australian dollar and the US dollar were as follows: Jun Jul Aug Sep 1 1 1$AUS 1$AUS 1$AUS 1$AUS = = = = $.71US $.73US $.79US $.83US This chart shows a a strengthening Australian Dollar which makes it less expensive for Americans to buy Australian goods b weakening Australian dollar which makes it less expensive for Americans to buy Australian goods c strengthening Australian dollar which makes it more expensive for Americans to buy Australian goods d weakening Australian dollar which makes it more expensive for Americans to buy Australian goods LO2 Which of the following factors will affect the spread between spot and forward rates? a b c d LO2 The The The All current cross rate between two currencies length of time for the forward contract currency denominated as the domestic currency of the above will affect the spread A US importer that purchased merchandise from a South Korean firm would be exposed to a net exchange gain on the unpaid balance if the a dollar weakened relative to the Korean won and the won was the denominated currency b dollar weakened relative to the Korean won and the dollar was the denominated currency c dollar strengthened relative to the Korean won and the won was the denominated currency d dollar strengthened relative to the Korean won and the dollar was the denominated currency ©2009 Pearson Education, Inc publishing as Prentice Hall 12-2 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Use the following information for Questions and On November 1, 20X3, Magpie Corporation sold merchandise to William Tell Corporation, a Swiss firm Magpie measured and recorded the account receivable from the sale at $78,000 William Tell paid for this account on November 30, 20X3 Spot rates for Swiss francs on November and November 30, respectively, were $0.80 and $0.78 LO3 If the sale of the merchandise was denominated in francs, the November 30 entry to record the receipt of payment from William Tell included a a b c d LO3 If the sale of merchandise is denominated in dollars, the November 30 entry to record receipt of the payment from William Tell included a a b c d LO3 credit to Accounts Receivable for $76,050 credit to Exchange Gain for $1,950 debit to Cash for $78,000 debit to Exchange Loss for $1,950 debit to Cash for $78,000 debit to Cash for $76,050 credit to Exchange Gain for $1,950 credit to Accounts Receivable for $76,050 On December 5, 20X3, Goose Corporation, a US firm, bought inventory items from Grebes Corporation of Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168 At Goose’s December 31, year-end, the spot rate was $0.167 On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 and paid the invoice How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income statements? a b c d $(1,000) and $500 $0 and ($500) $0 and $500 $1,000 and ($500) ©2009 Pearson Education, Inc publishing as Prentice Hall 12-3 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Use the following information for Questions and 10 On October 2, 20X4, Duck Corporation borrowed 150,000 British pounds from a London bank, evidenced by an interest-bearing note payable due in one year The note was payable in pounds Exchange rates for pounds was: October 2, 20X4 December 31, 20X4 October 2, 20X5 LO3 What exchange statement? a b c d LO3 10 a a a a loss loss gain gain of of of of gain or $1.60 $1.62 $1.56 loss appeared on Duck’s 20X4 income $6,000 $3,000 $3,000 $6,000 What is the final amount of the loan payable that Duck showed on its books, in dollars, just before it repaid the loan? a b c d $234,000 $236,000 $240,000 $243,000 Use the following information for questions 11 and 12 On November 2, 20X5, Swan Corporation entered into a 90-day contract to sell 220,000 kiwis in a transaction accounted for as speculation The spot rate for kiwis on November was $0.74 and the current quotation for 90-day futures was $0.68 On December 31, 20X3, the spot rate was $0.78 and the quotation for 30-day futures was $0.35 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-4 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO4 11 Swan’s entry on November 2, 20X5 included a a debit to Contract Receivable denominated in $149,600 b credit to Contracts Payable denominated in $149,600 c debit to Contract Receivable denominated in $154,000 d credit to Contracts Payable denominated in $154,000 LO4 12 for kiwis for kiwis for kiwis for What amount of exchange gain or (loss) was included in Swan’s 20X5 income? a b c d LO4 13 kiwis $(8,800) $(4,400) $ 4,400 $ 8,800 Under which of the following situations must a discount on a forward contract be amortized to income over the life of the contract? a If the contract is a hedge of a net asset position b If the contract is a speculation in currency c If the contract is a hedge of a foreign currency commitment d Under none of the above would a discount on a forward contract be amortized to income over the life of the contract LO4 14 A forward exchange contract is transacted at a discount if the current forward rate is a b c d less more less more than than than than the the the the current spot rate current spot rate expected spot rate expected spot rate ©2009 Pearson Education, Inc publishing as Prentice Hall 12-5 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO5 15 Which of the following is not a characteristic of a derivative? a It has one or more underlyings and one or more notational amounts b It requires no initial net investment or an initial investment that is smaller than would be required for contracts expected to have a similar response to the market c It requires no net settlement d It will be represented as an asset or liability on the financial statements LO5 16 Derivatives are measured on the financial statements at? a b c d LO6 17 Historical cost Effective hedge price Strike price Fair value Which of the following hedging strategies would a business most likely use? a An importer will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge an exposed net asset position b An importer will want to hedge his foreign denominated accounts payable and will purchase forward contracts to hedge an exposed net liability position c An exporter will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge an exposed net liability position d An exporter will want to hedge his foreign denominated accounts payable and will purchase forward contracts to hedge an exposed net liability position ©2009 Pearson Education, Inc publishing as Prentice Hall 12-6 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO6 18 Which of the following techniques can be used to measure hedge effectiveness? a b c d LO6 19 Which of the following is not an approach appropriate for hedge accounting? a b c d LO7 20 Critical term analysis Contribution margin analysis Present value analysis Breakeven analysis Fair value hedge Straddle hedge Cash flow hedge Hedge of net investment in a foreign subsidiary If a financial instrument is classified as a cash flow hedge, then a its gains or losses are represented in the income statement if a year-end occurs before the settlement date b it is classified as a held-to-maturity asset c it does not require a notational amount d its gains or losses are represented in the balance sheet if a year-end occurs before the settlement date ©2009 Pearson Education, Inc publishing as Prentice Hall 12-7 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise On September 1, 20X5, Osaka Company of Japan The spot rate for yen was $0.0077 on October Cormorant Company purchased merchandise from for 20,000,000 yen payable on October 1, 20X5 was $0.0079 on September and the spot rate Required: Did the exchange rate strength or weaken from September to October and what are the implications for Cormorant’s business? What journal entry did Cormorant record on September 1, 20X5? What journal entry did Cormorant record on October 1, 20X5? LO3 Exercise On October 15, 20X5, Ibis Corporation, a French company, ordered merchandise listed on the Internet for 20,000 Euros from Spoonbill Corporation, a US corporation, which immediately accepted the order The Euro rate was $1.20 US on October 15 On November 15, 20X5 Spoonbill shipped the goods and billed Ibis the purchase price of 20,000 Euros when the Euro rate was $1.30 US Ibis paid the bill on December 10, 20X5 Three days later Spoonbill exchanged the 20,000 Euros for US dollars when the Euro rate was $1.28US Required: Compute the foreign currency gains or losses on the December 31, 20X5 financial statements and show your calculations LO3 Exercise On November 1, 20X3, the Penguin Corporation, a US corporation, purchased an extruding machine from Shearwater Corporation, a UK company The purchase price was $10,000 and Penguin agreed to pay in pounds on February 1, 20X4 Both corporations are on a calendar year accounting period Assume that the spot rates for the British pound on November 1, 20X3, December 31, 20X3, and February 1, 20X4, are $1.60, $1.62, and $1.66, respectively Required: Record the November 1, December 31, and February transactions in the General Journals of Penguin Corporation and Shearwater Corporation If no entry is required on a particular date, indicate “No entry” in the General Journal ©2009 Pearson Education, Inc publishing as Prentice Hall 12-8 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO4 Exercise On November 1, 20X3, Petrel Corporation, a calendar-year US corporation, invested in a purely speculative contract to purchase million yen on January 30, 20X4, from the Karoke Trading Company, a Japanese brokerage firm Petrel agreed to purchase 1,000,000 yen from Karoke at a fixed price of $0.0100 per yen Karoke agreed to transmit 1,000,000 yen to Petrel on February 1, 20X4 The spot rates for yen are: Nov 01, 20X3 Dec 31, 20X3 Jan 30, 20X4 yen = $0.0097 yen = $0.0103 yen = $0.0106 The 30-day forward rate for yen on December 31, 20X3 was $0.0104 Required: Prepare the General Journal entries that November 1, December 31, and January 30 Petrel would record on LO4 Exercise On November 1, 20X5, Albatross Corporation, a calendar-year US corporation, invested in a purely speculative contract to purchase million euros on January 30, 20X6, from Munich Company, a German brokerage firm Albatross agreed to purchase 1,000,000 euros from Munich at a fixed price of $1.020 per euro Munich agreed to transmit 1,000,000 euros to Albatross on January 30, 20X6 The spot rates for euros are: Nov 01, 20X5 Dec 31, 20X5 Jan 30, 20X6 euro = $1.015 euro = $0.995 euro = $1.010 The 30-day futures rate for euros on December 31, 20X5 was $1.005 Required: Prepare the General Journal entries that Albatross would record on November 1, December 31, and January 30 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-9 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO7 Exercise 0n June 1, 20X5, Stork Industries purchases an option contract for $5,000 on 10,000 gallons of aviation gas to minimize its purchasing cost price exposure At the time, the market price is $2.50 per gallon and the option price of $2 per gallon will expire months later Stork can exercise the option at its discretion When Stork prepares quarter reports on June 30, the option is worth $4.50 and Stork is still holding it On August 1, Stork exercises the option when the gas market price is $5.00 per gallon and purchases 40,000 gallons of gas On August 15, Stork uses all of the gas on a charter flight Required: What are Stork’s journal entries with regard to the aviation gas option? LO7 Exercise On November 1, 20X5, US Pelican Company entered into a 90 day forward contract of 200,000£ pounds to hedge a commitment to purchase special equipment on February 1, 20X6 from a British firm Raven Inc Assume Pelican uses a 12% interest rate The relevant exchange rates are of dollars per pound: Spot Rate Forward Rate (for Feb 1, 20X6) November 1, 20X5 1.32 1.35 December 31, 20X5 1.47 1.50 February 1, 20X6 1.55 - Required: 1.What journal entry did Pelican record on November 1, 20X5? 2.What journal entry did Pelican record on December 1, 20X5? 3.What journal entry did Pelican record on February 1, 20X6 if the purchase was made? ©2009 Pearson Education, Inc publishing as Prentice Hall 12-10 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO8 Exercise On November 1, 20X3, Darter Corporation, a US corporation, purchased from Jacana Corporation, a Mexican company, some machinery that cost 1,000,000 pesos The invoice was payable in pesos on January 30, 20X4 To hedge against rapid changes in the peso, Darter entered into a forward exchange contract on November 1, 20X3 with AB Trader & Company, a US brokerage and investment firm The contract specified that AB Trader would sell 1,000,000 pesos to Darter at $0.102 per peso for settlement on January 30, 20X4 Assume that all three companies standards and have December 31st on November 1, December 31, and $0.107, respectively The 30-day 31, 20X3 is $0.101 are subject to the same accounting year-ends The spot rates for pesos January 30, are $0.100, $0.098, and forward rate for pesos on December Required: Record General Journal entries for Darter Corporation on November 1, December 31, and January 30 If no entry is required on a particular date, indicate “No entry” in the General Journal LO8 Exercise On November 1, 20X3, Gannet Corporation purchased 5,000 television sets for its merchandise inventory from Seoul, a South Korean firm, at a total quoted cost of 600,000,000 won (W) On this date, the spot rate for won was $1 = 750W On the same day, Gannet invested $900,000 cash in a non-interest bearing account with Tokyo, a Japanese bank, to hedge its exposed liability position The account payable to Seoul is due on January 30, 20X4 The exchange rates on December 31, 20X3 and January 30, 20X4 were $1 = 730W, and $1 = 700W, respectively Gannet agreed to pay Seoul in won Tokyo held the deposit in won but will remit dollars back to Gannet on January 30th Assume that Gannet, Seoul and Tokyo are subject accounting standards and have December 31 year-ends to the same Required: Prepare all the journal entries for Gannet Corporation's General Journal on November 1, 20X3, December 31, 20X3, and January 30, 20X4 If no entry is required on a particular date, indicate “No entry” in the General Journal ©2009 Pearson Education, Inc publishing as Prentice Hall 12-11 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO8 Exercise 10 On November 1, 20X5, US Frigatebird Company sold an airplane worth $1 million Australian dollars to Australian company Heron Inc to be delivered on February 1, 20X6 in Sydney In order hedge foreign exchange, Frigatebird entered into a 90 day forward contract on the same day for the amount of the sale at 73 US per Australian dollar The relevant exchange rates are of US dollars per Australian dollar: Spot Rate November 1, 20X5 73 December 31, 20X5 75 February 1, 20X6 79 Required: 1.What journal entry did Frigatebird record on November 1, 20X5? 2.What journal entry did Frigatebird record on December 1, 20X5? 3.What journal entry did Frigatebird record on February 1, 20X6 if the purchase was made? ©2009 Pearson Education, Inc publishing as Prentice Hall 12-12 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com SOLUTIONS Multiple Choice Questions a (198,000 krone/5.345 krone per dollar) = $37,043.97 b 30,000 x 67 = 20,100; $20,100 - $20,400 = $300 loss c b c d $78,000/.80 dollars per franc = $78,000/.78 dollars per franc = Difference in francs = Difference in dollars (2,500) x 78 = 97,500 100,000 (2,500) $ b $97,500 francs (from above) x 78 = $76,050 d Account payable, Dec 05, 20X3 1,000,000 x $0.168 = Account payable, Dec 31, 20X3 1,000,000 x $0.167 = Gain Account payable, Dec 31, 20X3 Account payable, at settlement Realized loss (1,950) $ 168,000 $ 167,000 1,000 $ $ b 150,000 pounds x (1.60 – 1.62) = $(3,000) loss 10 d 150,000 pounds x 1.62 = $243,000 11 b (220,000 kiwis)x($0.68) = $149,600 12 b (220,000 kiwis)x($.68 - $.70) = $4,400 loss 167,000 167,500 500 (To adjust the contract to the 30 day futures amount) 13 d 14 c 15 c ©2009 Pearson Education, Inc publishing as Prentice Hall 12-13 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 16 d 17 b 18 a 19 b 20 d ©2009 Pearson Education, Inc publishing as Prentice Hall 12-14 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Requirement The foreign exchange rate weakened making the purchase of goods on time cheaper from Japan Requirement and Date 9/01/X5 10/01/X5 Account Name Merchandise Accounts Payable: Osaka Debit 158,000 Accounts Payable: Osaka FX gain Cash 158,000 Credit 158,000 4,000 154,000 Exercise A $1,042 foreign exchange loss Spoonbill’s General Journal Date 10/15/X5 Account Name Accounts receivable Sale 20,000/1.2 12/10/X5 No entry 12/13/X5 Cash 20,000/1.28 Foreign exchange loss Accounts receivable Debit 16,667 Credit 16,667 15,625 1,042 16,667 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-15 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Date Nov 01 Dec 31 Feb 01 Direct Method 1£ = $1.60 1£ = $1.62 1£ = $1.66 Indirect Method $1 = £.6250 $1 = £.6173 $1 = £.6024 Penguin’s General Journal Date 11/01/X1 12/31/X1 Account Name Machinery Accounts Payable: Shearwater Debit 10,000 Exchange Loss Accounts Payable: Shearwater 125 Credit 10,000 125 (£6,250 x $1.62 = $10,125) ($10,000 - $10,125 = $125 loss) 02/01/X2 Exchange Loss Accounts Payable: Shearwater Accounts Payable: Shearwater Cash 250 250 10,375 10,375 (£6,250 x $1.66 = $10,375) Shearwater’s General Journal 11/01/X1 Accounts Receivable: Penguin Sales Revenue 12/31/X1 No entry 02/01/X2 Cash 6,250 6,250 6,250 Accounts Receivable: Penguin ©2009 Pearson Education, Inc publishing as Prentice Hall 12-16 6,250 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Petrel’s General Journal 11/01/X1 12/31/X1 01/30/X2 Contract Receivable Contract Payable (1,000,000 x $0.0100) 10,000 10,000 Contract Receivable Exchange Gain {1,000,000 x ($.0104 – 0.0100)} 400 Contract Receivable Exchange Gain {1,000,000 x ($.0106 - 0104)} 200 Cash Contracts Payable Cash Contract Payable 400 200 10,600 10,000 10,000 10,600 Exercise Albatross’s General Journal 11/01/X3 12/31/X3 01/30/X4 Contract Receivable Contract Payable (1,000,000 x $1.020/euro) 1,020,000 1,020,000 Exchange Loss Contract Receivable {1,000,000 x ($1.010 – $1.020)} 10,000 Contract Receivable Exchange Gain {1,000,000 x ($1.015 - $1.010)} 5,000 Cash Contract Payable Cash Contract Receivable 10,000 5,000 1,015,000 1,020,000 1,020,000 1,015,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-17 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Stork’s General Journal 6/01/X5 6/30/X5 8/01/X5 Aviation gas contract option Cash 5,000 5,000 Aviation gas contract option Other comprehensive income 20,000 Cash 30,000 20,000 Aviation gas contract option Other comprehensive income 8/15/X5 25,000 5,000 Aviation gas Cash 200,000 Cost of goods sold Aviation gas 200,000 Other comprehensive income Cost of goods sold 200,000 200,000 25,000 25,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-18 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Pelican’s General Journal 12/31/X5 Forward contract OCI 29,703 29,703 (1.35-1.50)x200,000/(1.01)1 Implicit rate 1.32x200,000(1+r)3=1.35x200,000 r=0.007519 Discount Amortization 11/30 12/31 1/31 1985.04 1999.97 2015.00 12/31/X5 Exchange Loss 1985.042+1999.968 OCI 02/01/X6 Balance 264000 265985 267985 270000 3985 3985 Forward contract AOCI 10,297 Cash (1.55-1.35)x200,000 Forward contract 40,000 10,297 40,000 Equipment Cash 310,000 Equipment OCI 2015 310,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-19 2015 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Darter’s General Journal Date 11/01/X1 11/01/X1 12/31/X1 12/31/X1 01/30/X2 Account Name Machinery Accounts Payable: Jacana(pesos) Debit 100,000 Contract Receivable-pesos Contract Payable:AB Trader 102,000 Credit 100,000 102,000 Accounts Payable: Jacana(pesos) Exchange Gain 2,000 Unrealized Loss on Contract Contract Receivable-pesos {($.101 - $.102)(1,000,000)} 1,000 Exchange Loss Accounts Payable: Jacana(pesos) 9,000 Contract Receivable-pesos Unrealized Gain on Contract 6,000 2,000 1,000 9,000 6,000 Cash-pesos Contract payable:AB Trader Contract Receivable-pesos Cash 107,000 102,000 Accounts Payable:Jacana(pesos) Cash-pesos 107,000 107,000 102,000 107,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-20 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Date Nov 01 Dec 31 Jan 30 Direct Method 1W = $.001333 1W = $.001369 1W = $.001428 Indirect Method $1 = W750 $1 = W730 $1 = W700 GANNET’s General Journal 11/01/X1 Inventory Accounts Payable: Seoul 800,000 800,000 (600,000,000/W750 per $1) 11/01/X1 Deposit Receivable: Tokyo Cash 900,000 900,000 Value of deposit in won: $900,000 x 750 won/ $1 = 675,000,000 won 12/31/X1 Deposit Receivable: Tokyo Exchange Loss Accounts Payable: Seoul Exchange Gain 24,658 21,918 21,918 24,658 Account Payable: 600,000,000/W730 = $821,918 $821,918 - $800,000 = $21,918 Deposit Receivable: 675,000,000/W730 = $924,658 $924,658 - $900,000 = $24,658 01/30/X2 Deposit Receivable: Tokyo Exchange Loss Exchange Gain Accounts Payable: Seoul 39,628 35,225 39,628 35,225 Account Payable: 600,000,000/W700 = $857,143 $857,143 - $821,918 = $35,225 Deposit Receivable: 675,000,000/W700 = $964,286 $964,286 - $924,658 = $39,628 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-21 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 01/30/X2 01/30/X2 Accounts Payable: Seoul Cash 857,143 Cash Deposits Receivable: Tokyo 964,286 857,143 964,286 Exercise 10 Frigatebird’s General Journal 11/1/X5 12/31/X5 Accounts receivable Sales Exchange rate loss Accounts receivable 1,369,863 1,369,863 36,530 36,530 1,369,863-1,333,333=36,530 02/01/X6 Forward contract Exchange rate gain 36,530 Exchange rate loss Accounts receivable 67,510 Forward contract Exchange rate gain 67,510 36,530 67,510 67,510 1,333,333-1,265,823=67,510 Cash 1,369,863 Accounts receivable Forward contract 1,265,823 104,040 ©2009 Pearson Education, Inc publishing as Prentice Hall 12-22 ... 11/01/X1 12/ 31/X1 Account Name Machinery Accounts Payable: Shearwater Debit 10,000 Exchange Loss Accounts Payable: Shearwater 125 Credit 10,000 125 (£6,250 x $1.62 = $10 ,125 ) ($10,000 - $10 ,125 = $125 ... Prentice Hall 12- 19 2015 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Exercise Darter’s General Journal Date 11/01/X1 11/01/X1 12/ 31/X1 12/ 31/X1... was made? ©2009 Pearson Education, Inc publishing as Prentice Hall 12- 12 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com SOLUTIONS Multiple Choice