Question

Bering Hats Corp. exports original cowboy hats to Disney Land Paris. Record the following transactions into the Journal.

Nov. 22^nd :    Bering Hats Corp. sold 150,000 original cowboy hats at a unit price 20 EURO, due in 45 days. The current exchange rate is 1.075 US$ per 1.00 EURO.

Dec. 31^st :     Bering Hats Corp. made a year-end adjusting entry to the Account Receivables from Disney Land Paris. The exchange rate at year-end is 1.050 US$ per 1.00 EURO.

Jan. 27^th :     Bering Hats Corp. received a wire transfer from Disney Land Paris. The exchange rate at this date is 1.085 US$ per 1.00 EURO

Journal
Date		Account Titles	Debit	Credit

Answer 1

Date	Particular	Debit $	Credit $
Nov 22	Account Receivable Account	32,25,000
	To Sales Account		32,25,000
	(150,000 units * 20 Euro * $1.075 per Euro)
Dec 31	Foreign Currency Transaction Loss	75,000
	To Account Receivable Account		75,000
	[150,000 units * 20 Euro ($1.050 - $1.075)]
Jan 25	Cash Account	32,55,000
	To Accounts Receivable Account		31,50,000
	To Foreign Currency Transaction Gain		105,000
	[150000 units * 20 Euro ($1.085 - $1.050)]