Southerland Corporation, a U.S. video games manufacturer, had several foreign exchange transactions during 2023 and 2024. 2023 10/01/23 11/01/23 12/31/23 2024 01/31/24 Required: Southlerland sold office equipment to a firm in Oman for 100,000 rial. Payment is to be received in Omani rial in six months on April 1, 2024. The spot rate for the Omani rial dinar is $2.65. Contracted to deliver inventory to a firm in Poland on January 31, 2024. The contract was for 725,000 Polish zloty due on May 1, 2024. To hedge against the future commit- ment, Southerland acquired a forward exchange contract. The six-month contract is to sell 725,000 Polish zloty to the broker on June 4, 2024 at a forward rate of $0.20. The spot rate on for the Polish zloty on November 1, 2023 is $0.25. Adjusted the accounts when the spot/current rate and forward rate for the Polish zloty is $0.18 and $0.21, respectively, and the current rate for the Omani rial is $2.66. Delivered inventory to the firm in Poland. Southerland uses the perpetual system to record inventory transactions and the cost to manufacture the inventory was $125,000. The spot rate and forward rate for Polish zloty is $0.27 and $0.26, respectively. Prepare all journal entries to record the above transactions through January 31, 2024.
Southerland Corporation, a U.S. video games manufacturer, had several foreign exchange transactions during 2023 and 2024. 2023 10/01/23 11/01/23 12/31/23 2024 01/31/24 Required: Southlerland sold office equipment to a firm in Oman for 100,000 rial. Payment is to be received in Omani rial in six months on April 1, 2024. The spot rate for the Omani rial dinar is $2.65. Contracted to deliver inventory to a firm in Poland on January 31, 2024. The contract was for 725,000 Polish zloty due on May 1, 2024. To hedge against the future commit- ment, Southerland acquired a forward exchange contract. The six-month contract is to sell 725,000 Polish zloty to the broker on June 4, 2024 at a forward rate of $0.20. The spot rate on for the Polish zloty on November 1, 2023 is $0.25. Adjusted the accounts when the spot/current rate and forward rate for the Polish zloty is $0.18 and $0.21, respectively, and the current rate for the Omani rial is $2.66. Delivered inventory to the firm in Poland. Southerland uses the perpetual system to record inventory transactions and the cost to manufacture the inventory was $125,000. The spot rate and forward rate for Polish zloty is $0.27 and $0.26, respectively. Prepare all journal entries to record the above transactions through January 31, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Southerland Corporation, a U.S. video games manufacturer, had several foreign exchange transactions
during 2023 and 2024.
2023
10/01/23
11/01/23
12/31/23
2024
01/31/24
Required:
Southlerland sold office equipment to a firm in Oman for 100,000 rial. Payment is to be
received in Omani rial in six months on April 1, 2024. The spot rate for the Omani rial
dinar is $2.65.
Contracted to deliver inventory to a firm in Poland on January 31, 2024. The contract
was for 725,000 Polish zloty due on May 1, 2024. To hedge against the future commit-
ment, Southerland acquired a forward exchange contract. The six-month contract is to
sell 725,000 Polish zloty to the broker on June 4, 2024 at a forward rate of $0.20. The
spot rate on for the Polish zloty on November 1, 2023 is $0.25.
Adjusted the accounts when the spot/current rate and forward rate for the Polish zloty
is $0.18 and $0.21, respectively, and the current rate for the Omani rial is $2.66.
Delivered inventory to the firm in Poland. Southerland uses the perpetual system to
record inventory transactions and the cost to manufacture the inventory was $125,000.
The spot rate and forward rate for Polish zloty is $0.27 and $0.26, respectively.
Prepare all journal entries to record the above transactions through January 31, 2024.
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