On October 15,2011,Napole Corporation,a French company,ordered merchandise listed on the internet for 20,000 Euros from Adams Corporation,a U.S.corporation.The euro rate was $1.20 (U.S.dollars)on October 15.On November 15,2011 Adams shipped the goods and billed Napole the purchase price of 20,000 Euros when the euro rate was $1.30.Napole paid the bill on December 10,2011,and Adams immediately exchanged the 20,000 Euros for US dollars when the Euro rate was $1.28 on December 10,2011.
Required:
Compute the foreign currency gain or loss on the December 31,2011 financial statements of Adams and show the related journal entries.

Question

Quizplus · Accepted Answer

The Answer of On October 15,2011,Napole Corporation,a French company,ordered merchandise listed on the internet for 20,000 Euros from Adams Corporation,a U.S.corporation.The euro rate was $1.20 (U.S.dollars)on October 15.On November 15,2011 Adams shipped the goods and billed Napole the purchase price of 20,000 Euros when the euro rate was $1.30.Napole paid the bill on December 10,2011,and Adams immediately exchanged the 20,000 Euros for US dollars when the Euro rate was $1.28 on December 10,2011.
Required:
Compute the foreign currency gain or loss on the December 31,2011 financial statements of Adams and show the related journal entries.

On October 15,2011,Napole Corporation,a French Company,ordered Merchandise Listed on the Internet