Importing Transactions-Journal Entries Striking Furs Imports Furs from Canada.In the Space Provided Below,prepare

question 57

Essay

Importing transactions-journal entries
Striking Furs imports furs from Canada.In the space provided below,prepare journal entries to record the following events.
Dec.11,2014: Purchased furs from Capable Trappers,Ltd.,a Canadian corporation,at a price of 25,000 Canadian dollars,due in 60 days.The current exchange rate is $0.85 U.S.dollars per Canadian dollar.(Striking uses the perpetual inventory method; debit the Inventory account.)
Dec.31,2014: Striking made a year-end adjusting entry relating to the account payable to Capable Trappers.The exchange rate at year-end is $0.89 U.S.dollars per Canadian dollar.
Feb.9,2015: Issued a check for $21,750 (U.S.dollars)to National Bank in full settlement of the liability to Capable Trappers,Ltd.The exchange rate at this date is $0.87 U.S.dollars per Canadian dollar.

---

Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true for a specific business.

Curvilinear Costs

Costs that change with the level of output or activity in a non-linear relationship, displaying variances in the cost per unit at different production volumes.

Break-even Analysis

A calculation that determines when an investment will reach a financial break-even point.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in missing sales projections.