On September 1,2011,Bylin Company Purchased Merchandise from Himeji Company of Japan

question 29

Essay

On September 1,2011,Bylin Company purchased merchandise from Himeji Company of Japan for 20,000,000 yen payable on October 1,2011.The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October 1.The purchase was paid on October 1,2011.
Required:
1.Did the U.S.dollar strengthen or weaken from September to October and what are the implications for Bylin's business?
2.What journal entry did Bylin record on September 1,2011?
3.What journal entry did Bylin record on October 1,2011?

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Definitions:

Western Settlement

The migration and establishment of communities and towns in the Western territories of the United States during the 19th century.

Civil War

A conflict between citizens of the same country, often referring to the American Civil War from 1861 to 1865 between Northern states (Union) and Southern states (Confederacy) over issues including slavery and states' rights.

U.S. Government

The federal government of the United States, composed of three branches: executive, legislative, and judicial, established by the Constitution to govern the country.

Fair Contracts

are legally binding agreements that are made in good faith, characterized by equality, respect, and honesty between all parties involved.