Spatial Industries, a U.S. multinational enterprise that prepares annual financial statements, received merchandise on March 8, 2006, from a Finnish supplier at a cost of 200,000 markkas (Fmk). Spatial acquired a draft on April 7, 2006, in the amount of Fmk200,000 for mailing to the Finnish supplier. Spot rates for the markka on the two dates were as follows:
Prepare a working paper to compute the amount of the foreign currency transaction gain or loss that Spatial Industries recognizes on April 7, 2006. Show computations.

Question

Spatial Industries, a U.S. multinational enterprise that prepares annual financial statements, received merchandise on March 8, 2006, from a Finnish supplier at a cost of 200,000 markkas (Fmk). Spatial acquired a draft on April 7, 2006, in the amount of Fmk200,000 for mailing to the Finnish supplier. Spot rates for the markka on the two dates were as follows:
  Prepare a working paper to compute the amount of the foreign currency transaction gain or loss that Spatial Industries recognizes on April 7, 2006. Show computations.

Quizplus · Accepted Answer

The Answer of Spatial Industries, a U.S. multinational enterprise that prepares annual financial statements, received merchandise on March 8, 2006, from a Finnish supplier at a cost of 200,000 markkas (Fmk). Spatial acquired a draft on April 7, 2006, in the amount of Fmk200,000 for mailing to the Finnish supplier. Spot rates for the markka on the two dates were as follows:
  Prepare a working paper to compute the amount of the foreign currency transaction gain or loss that Spatial Industries recognizes on April 7, 2006. Show computations.