Kettle Company purchased equipment for 375,000 British pounds from a supplier in London on July 3, 2014.Payment in British pounds is due on Sept.3, 2014.The exchange rates to purchase one pound is as follows: On its August 31, 2014, income statement, what amount should Kettle report as a foreign exchange transaction gain:

Question

Kettle Company purchased equipment for 375,000 British pounds from a supplier in London on July 3, 2014.Payment in British pounds is due on Sept.3, 2014.The exchange rates to purchase one pound is as follows:  On its August 31, 2014, income statement, what amount should Kettle report as a foreign exchange transaction gain:

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The Answer of Kettle Company purchased equipment for 375,000 British pounds from a supplier in London on July 3, 2014.Payment in British pounds is due on Sept.3, 2014.The exchange rates to purchase one pound is as follows:  On its August 31, 2014, income statement, what amount should Kettle report as a foreign exchange transaction gain:

Kettle Company Purchased Equipment for 375,000 British Pounds from a Supplier