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What is the journal entry required to record the ordering of North's merchandise?


A) No entry is required.
B)
 Debit  Credit  Merchandise Inventory  CDN $686,700 Accounts Pay able  CDN $686,700\begin{array}{|l|l|l|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Merchandise Inventory } & \text { CDN } \$ 686,700 & \\\hline \text { Accounts Pay able } & & \text { CDN } \$ 686,700 \\\hline\end{array}
C)
 Debit  Credit  Merchandise Inventory  CDN $697,500 Accounts Pay able  CDN $697,500\begin{array}{|l|l|l|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Merchandise Inventory } & \text { CDN } \$ 697,500 & \\\hline \text { Accounts Pay able } & & \text { CDN } \$ 697,500 \\\hline\end{array}

D) A) and B)
E) A) and C)

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What is the amount of the discount on the forward contract?


A) CDN$1,000.
B) CDN$1,500.
C) CDN$3,000.
D) CDN$6,000.

E) B) and D)
F) A) and C)

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What is the amount of foreign exchange gain or loss recognized on the 2017 Income Statement as a result of revaluing the loan payable?


A) $2,500 loss.
B) $800 loss.
C) $800 gain.
D) $2,500 gain.

E) None of the above
F) All of the above

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What would be the amount of the foreign exchange gain or loss recorded at the settlement date?


A) A CDN$15 exchange loss.
B) A CDN$10 exchange loss.
C) A CDN$5 exchange gain.
D) A CDN$10 exchange gain.

E) A) and B)
F) A) and D)

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At what amount would North record its inventory when received from its supplier, if the exchange gain or loss is adjusted to the value of the inventory on the transaction date?


A) CDN$686,700.
B) CDN$693,000.
C) CDN$694,500.
D) CDN$696,000.

E) B) and D)
F) A) and B)

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