Prepare Journal Entries for the Following Transactions for Inter-Global Co

question 4

Essay

Prepare journal entries for the following transactions for Inter-Global Co.
October 10: Purchased merchandise on account from Le Monde,a French company,for 80,000 euros.The exchange rate was $0.82.
November 2: Paid Le Monde for the merchandise purchased on October 1.The exchange rate at this date was $0.83.
November 15: Sold merchandise to Nippon,a Japanese company for 300,000 yen on account.The rate of exchange was $0.0091.
November 20: The Japanese company paid the full amount.The exchange rate was $0.0090.
December 5: Sold merchandise to Ponti,an Italian company for $24,000.The exchange rate is $0.81.The Italian company agrees to pay in U.S.dollars.
December 18: Collected the full amount from the Italian company when the exchange rate is $0.82.

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Definitions:

Dividend Per Share

The amount of dividend a company pays out for each share of its stock, typically expressed on an annual basis.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shareholder's equity remains the same.

Stock Price

The cost of purchasing a share of a company in the stock market; it fluctuates based on supply and demand.

Dividend Income

Earnings distributed to shareholders, usually derived from the company's profits, for holding the company's stock.