8/19/2019 Forex Exercise

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Elbambo | Linaac | Malatray

LS 170 - X

Exercise In Foreign Exchange Accounting

1. What is the accounting entry in pesos on October 1, 2015 when the L/C is opened?

Dr. Purchase - Import P 4,550,000

Cr. A/P P4,550,000

2. What is the accounting entry in pesos on October 31, 2015, the end of the fiscal year?

Dr. Loss from Forex P 45,000

Cr. A/P P45,000

3. What is the accounting entry in pesos on January 31, 2016, when payment is made?

Dr. A/P P 4,550,000

Loss from Forex P 125,000

Cr. Cash P4,675,000

4. What is the accounting entry of the US exporting company is US dollars on October 1,

2015?

Dr. A/R P4,550,000Cr. Sales - Exports P4,550,000

5. What is the accounting entry of the US exporting company in US dollars on October 31,

2015, assuming that its fiscal year ends also on October 31?

 No collection yet

6. What is the accounting entry of the US exporting company in US dollars on January 31,

2016, when collection is made?

Dr. Cash P4,675,000Cr. A/R P4,550,000

Gain on Forex P125,000