Importing Transactions-Journal Entries
Striking Furs Imports Furs from Canada

Importing transactions-journal entries
Striking Furs imports furs from Canada. In the space provided below, prepare journal entries to record the following events.
Dec. 11, 2009: Purchased furs from Capable Trappers, Ltd., a Canadian corporation, at a price of 25,000 Canadian dollars, due in 60 days. The current exchange rate is .85 U.S. dollars per Canadian dollar. (Striking uses the perpetual inventory method; debit the Inventory account.)
Dec. 31, 2009: Striking made a year-end adjusting entry relating to the account payable to Capable Trappers. The exchange rate at year-end is .89 U.S. dollars per Canadian dollar.
Feb. 9, 2010: Issued a check for $21,750 (U.S. dollars) to National Bank in full settlement of the liability to Capable Trappers, Ltd. The exchange rate at this date is .87 U.S. dollars per Canadian dollar. $$\begin{array} { | l | l | l | l | } \hline 2009 & \text { General Journal } & & \\\hline \text { Dec 11 } & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline \text { Dec 31 } & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline 2010 & & & \\\hline \text { Feb 9 } & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$