On October 15,2014,Napole Corporation,a French Company,ordered Merchandise Listed on the Internet

question 11

Essay

On October 15,2014,Napole Corporation,a French company,ordered merchandise listed on the internet for 20,000 Euros from Adams Corporation,a U.S.corporation.The euro rate was $1.20 (U.S.dollars)on October 15.On November 15,2014 Adams shipped the goods and billed Napole the purchase price of 20,000 Euros when the euro rate was $1.30.Napole paid the bill on December 10,2014,and Adams immediately exchanged the 20,000 Euros for U.S.dollars when the Euro rate was $1.28 on December 10,2014.
Required:
Compute the foreign currency gain or loss on the December 31,2014 financial statements of Adams and show the related journal entries.

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Definitions:

Production

The process of creating goods and services from various resources, involving stages such as planning, designing, and manufacturing.

Tangible Products

Goods that have a physical form and can be touched, such as electronics, furniture, and vehicles.