On November 1,2010,the Yankee Corporation,a US Corporation,purchased and Received an Extruding

question 14

Essay

On November 1,2010,the Yankee Corporation,a US corporation,purchased and received an extruding machine from Wales Corporation,a UK company.The purchase price was $10,000(U.S.dollars)and Yankee agreed to pay in pounds on February 1,2011.Both corporations are on a calendar year accounting period.Assume that the spot rates for the British pound on November 1,2010,December 31,2010,and February 1,2011,are $1.60,$1.62,and $1.66,respectively.
Required:
Record the November 1,December 31,and February 1 transactions in the General Journals of Yankee Corporation and Wales Corporation.If no entry is required on a particular date,indicate "No entry" in the General Journal.

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Definitions:

Consolidated Revenue

The total revenue recognized from the combined operations of a parent company and its subsidiaries, after inter-company transactions have been eliminated.

Revenue Test

A criterion used to determine whether a business segment or component qualifies as a reportable segment based on its revenue amount, either internally or externally generated.

Segment Revenues

Revenues generated from different business units or geographical areas within a company.

Segment Expenses

Costs that are directly associated with specific divisions or operational segments of a company.