Quantum Company Imports Goods from Different Countries

question 16

Essay

Quantum Company imports goods from different countries.Some transactions are denominated in U.S.dollars and others in foreign currencies.A summary of accounts receivable and accounts payable on December 31,20X8,before adjustments for the effects of changes in exchange rates during 20X8,follows:

The spot rates on December 31,20X8,were:

The average exchange rates during the collection and payment period in 20X9 are:

Required:
1.Prepare the adjusting entries on December 31,20X8.
2.Record the collection of the accounts receivable and the payment of the accounts payable in 20X9.
3.What was the foreign currency gain or loss on the accounts receivable transaction denominated in SFr for the year ended December 31,20X8? For the year ended December 31,20X9? Overall for this transaction?
4.What was the foreign currency gain or loss on the accounts receivable transaction denominated in ¥? For the year ended December 31,20X8? For the year ended December 31,20X9? Overall for this transaction?

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Definitions:

Process Structure

Refers to the arrangement and organization of various components within a process, including tasks, resources, and workflows, aimed at achieving efficient operations and outcomes.

Network Structure

The arrangement or organization of interconnected nodes or elements within a network, influencing its function and performance.

Overhead

The ongoing administrative expenses and operational costs not directly tied to the production of goods or services.

Flexibility

The ability to adapt to changes, challenges, and varying conditions effectively and efficiently.