CHAPTER 19 MULTIPLE MULT IPLE CHOICES C HOICES - COMPUTA CO MPUTATIONAL TIONAL 19-1:
d. Direct exchange rate: December 1 December 31 Decrease in forex rate
1 ÷ 2.22 yen = 1 ÷ 2.70 yen =
P P
Forex gain (200,000 yen x P0.08)
19-2:
19-3:
19-4:
0.45 0.37 0.08
P
16,000
P
c. orex rate! December 1 orex rate! December 31 "ncrease in forex rate
P
0.45 0.47 0.02
Forex gain (1,500,000 yen x P0.02)
P
30,000
P
d. September 30: orex rate! #e$tember 1 orex rate! #e$tember 30 Decrease in forex rate
P
5.%1 5.5& 0.02
Forex gain (200,000 hkg.$ x P0.02)
P
4,000
P
December 31: orex rate! 'ctober 1 orex rate! December 30 "ncrease in forex rate
P
5.5& 5.%2 0.03
Forex loss (200,000 hkg.$ x P0.03)
P
(6,000)
c. orex (oss on im$ortation of merchan)ise: Peso e*+i,a(ent! -an+ary 10! 2011 Peso e*+i,a(ent! $ri( 20! 2011 orex (oss /increase orex (oss on notes $ayab(e: Peso e*+i,a(ent! #e$tember 1! 2011 Peso e*+i,a i,a(en (ent! December 31! 2011 orex (oss on $rinci$a( )): orex (oss on interest ase) on P 3!2000!000 ase ase) ) on P 300! 300!00 000! 0!00 000 0 /P3! /P3!00 000! 0!00 000x 0x10 10x x4 412 12 orex (oss Total orex loss (P 8,000 ! P220,000)
P P
%00!000 %08!000 /8 / 8!000
P 3!000!000 3!200!000 P /200!000 P 120!000 100! 100!00 000 0
20!0 20!000 00 P /220!000 P (228,000)
123
19-5:
a. Direct forex rate ransaction )ate /P 1 ÷ 60.018 Direct forex rate a(ance sheet )ate /P 1 ÷ 60.017 Direct forex rate #ett(ement )ate /P 1 ÷ 60.020 Forex gain (loss), 2010 ransaction )ate /610!000 x P55.5555 a(ance sheet /610!000 x P 58.8235 Forex loss (in"rease) Forex gain (loss), 2011 a(ance sheet )ate /610!000 x P58.8235 #ett(ement )ata /610!000 x P 50.00 Forex gain (#e"rease)
19-6:
55.5555 58.8235 50.0000
P
555!555 588!235 P ( 32,680)
P 588!235 500!000 P 88,235
b. )+ste) ,a(+e of acco+nts recei,ab(e! %30 Peso e*+i,a(ent! 727 orex (oss
19-7:
P
P P
315!000 300!000 /15!000
a. 2010 orex rate! 11510 orex rate! 123110 Decrease in forex rate Payab(e in foreign c+rrency Forex gain 2011 orex rate! 123110 orex rate! 11511 Decrease in forex rate Payab(e in foreign c+rrency Forex loss
19-8:
a. /1000!000 x P 0.85
19-9:
c. /50!000 x P 0.%4&8
P P P
P P P
0.42&5 0.4245 0.0050 50!000 250
0.4245 0.4345 0.0100 50!000 (500)
19-1: b or9ar) rate! 33111 #e((ing s$ot rate! 43011 Decrease
P
0.25 0.22 P
0.03 or9ar) contract recei,ab(e Forex loss
P
100!000 3,000
124
19-11: d. forex gain /(oss on $+rchase commitments is base) on the changes in the for9ar) rates. or9ar) rates December 31! 2010 &0)ay for9ar) rate
P
.0055 .0055
'n December 31! 2010! no changes in for9ar) rates occ+rre)! so no forex gains /(osses are to be recogni;e) on December 31! 2010 +n)er both transactions.
19-12: b. or9ar) contract recei,ab(e /P100!000 aht x P1.%50 #$ot rate /100!000 aht x P1.%00 Forex loss
P P
1%5!000 1%0!000 (5,000)
19-13: d. Import transaction – Based on spot rates: 123110: orex (oss o net ex$os+re bet9een >o,ember 1 an) Earch 1. Eichae(! "nc. has he)ge) its foreign c+rrency $+rchase commitment 9ith a for9ar) contract to recei,e an e*+a( n+mber of foreign c+rrency +nits.
b.
>o,ember 1:
December 31:
or9ar) contract recei,ab(e 3!07%!800 or9ar) contract $ayab(e /o record "orard contract at "orard rate: 240!000 ?inggit x P12.82 orex (oss 4!800 or9ar) contract recei,ab(e /o record "orex loss "or t$e decrease in "orard rate! P240!000 x P.02
3!07%!800
4!800
128
roblem 1*+3, contin&ed: December 31: irm commitment for merchan)ise 4!800 orex gain /o record increase in "air %al&e o" t$e &rc$ase commitment, and res<ant gain or t$e decrease in t$e "orard rate'
Earch 1:
4!800
or9ar) contract $ayab(e 3!07%!800 ash /o record settlement o" "orard contract'
3!07%!800
ash /240!000 x P12.8% 3!08%!400 orex (oss /240!000 x P.02 4!800 or9ar) contract recei,ab(e /o record receipt o" 20,000 inggit $en t$e spot rate is 12''
3!0&1!200
irm commitment for merchan)ise orex gain /o record c$ange in %al&e o" t$e "irm commitment'
4!800
P+rchases /240!000 x P12.82 3!07%!800 irm commitment for merchan)ise ash /o record p&rc$ases o" merc$andise .
4!800
&!%00 3!08%!400
P&'b()* 19-4 -+ne 1:
P+rchases 4%0!000 cco+nts $ayab(e /o record p&rc$ases /G 1!000!000 x P.4%. or9ar) contract recei,ab(e /fc 480!000 or9ar) contract $ayab(e /o record p&rc$ase o" 4 1,000,000 "or deli%er in 0 das at "orard rate o" ''
-+ne 30:
orex (oss 20!000 cco+nts $ayab(e /o record "orex loss "or t$e increase in spo t rate! G 1!000!000 x /P.4% P.48 or9ar) contract recei,ab(e 20!000 orex gain /o record "orex gain "or t$e increase in "orard rate! G 1!000!000 x /P.48 P.50.
4%0!000
480!000
20!000
20!000
12&
roblem 1*+, contin&ed: +g+st 1: cco+nts $ayab(e orex (oss /G 1!000!000 x P.03 ash /G 1!000!000 x P.51 /o record settlement'
480!000 30!000 510!000
ash /G 1!000!000 x P.51 510!000 orex gain or9ar) contract recei,ab(e /o record receipt o" 4 1,000,000 at spot rate
10!000 500!000
or9ar) contract $ayab(e 480!000 ash /o record settlement o" "orard contract'
480!000
cco+nts recei,ab(e 1!280!000 #a(es /o record sale /100!000 ?ia( x P12.80.
1!280!000
P&'b()* 19-5 December 1:
or9ar) contract recei,ab(e 1!240!000 or9ar) contract $ayab(e /fc /o record "orard contract to sell 100,000 ial at a &0)ay for9ar) rate of P12.40. December 31:
orex (oss 10!000 cco+nts recei,ab(e /o ad5&st recei%able "or t$e decrease in spot rate and record "orex loss, 100,000 ial x (12'0 – 12'60)' orex (oss 20!000 or9ar) contract $ayab(e / /o record "orex gain "or t$e increase in "orard rate, 100,000 ial x (12'0 – 12'0)'
Earch 1:
ash 1!2&0!000 orex gain/100!000 ?ia( x P.20 cco+nts recei,ab(e /o record collection o" acco&nts recei%able at spot rate' or9ar) contract $ayab(e / orex (oss ash /100!000 ?ia( x P12.%0 o recor) )e(i,ery of 100!000 ?ia(.
1!240!000
10!000
20!000
20!000 1!270!000
1!2%0!000 30!000
ash 1!240!000 or9ar) contract recei,ab(e /o record collection "or "orard contract'
1!2&0!000
1!240!000
130
P&'b()* 19-6 'ctober 1:
December 31:
$ri( 1:
or9ar) contract recei,ab(e or9ar) contract $ayab(e /fc /15!000 aht x P1.1%
17!400
orex (oss or9ar) contract $ayab(e /fc 15!000 aht x /P1.1% P1.17.
150
irm commitment for materia(s orex gain /o record increase in "air %al&e o" sales commitment'
150
17!400
150
150
ash 17!400 or9ar) contract recei,ab(e /o record collection o" "orard contract' or9ar) contract $ayab(e 17!550 orex gain ash fc /15!000 aht x P1.1% /o record deli%er o" 17,000 Ba$t at "orard rate o" 1'1' orex (oss irm commitment for materia(s ashfc /15!000 aht x P1.18 #a(es /o record sales'
17!400
150 17!400
150 150 17!700 17!700
P&'b()* 19-7 'ontra"t 1*
'ctober 1:
December 31:
$ri( 1:
or9ar) contract recei,ab(e /fc 1%0!000 or9ar) contract $ayab(e /o record "orard contract to b& 400,000 at 0' or9ar) contract recei,ab(e /fc 4!000 orex gain /o record "orex gain "or t$e increase in "orard rate o" '01. ash /G 400!000 x P.43 172!000 or9ar) contract recei,ab(e /fc orex gain /o record receipt o" 400,000 at spot rate o" '3' or9ar) contract $ayab(e 1%0!000 ash /o record pament o" "orard contract .
1%0!000
4!000
1%4!000 2!000
1%0!000
131
roblem 1*+6, contin&ed: 'ontra"t 2*
December 1:
December 31:
Earch 1:
or9ar) contract recei,ab(e &!200 or9ar) contract $ayab(e /fc /o record "orard contract to sell 2 million &pia$ at '00' or9ar) contract $ayab(e 200 orex gain /o record "orex gain "or t$e decrease in "orard ate b '0001'
&!200
200
ash &!200 or9ar) contract recei,ab(e /o record settlement o" "orard contract'
&!200
or9ar) contract $ayab(e /fc &!000 orex (oss 800 ash /o record pament o" 2 million &pia$ at spot rate o" '00*'
&!800
P&'b()* 19-8
-+ne 1:
"n,entory Hse) I*+i$ment cco+nts $ayab(e o recor) $+rchase of the e*+i$ment /220!000 x P0.720 "n,estment in ca(( o$tion ash o recor) $+rchase of ca(( o$tion.
-+ne 15:
158!400 158!400
1!000 1!000
cco+nts recei,ab(e #a(es o recor) sa(e of e*+i$ment /300!000 x P0.720
21%!000
or9ar) contract recei,ab(e P or9ar) contract $ayab(e o recor) for9ar) contract to se(( /300!000 s P0.72&
218!700
21%!000
218!700
Eemo entry to b+y e*+i$ment or9ar) contract recei,ab(e or9ar) contract $ayab(e P o recor) for9ar) contract to b+y /400!000 x P0.731
2&2!400 2&2!400
132
roblem 1*+, contin&ed: -+ne 20: "n,entory Hse) I*+i$ment 21!&%0 ash o recor) recon)itioning the e*+i$ment /30!000 x P0.732
30:
cco+nts recei,ab(e #a(es o recor) sa(es of +se) e*+i$ment /310!000 x P0.732
22%!&20
ost of goo)s so() "n,entory +se) e*+i$ment o recor) costs of +se) e*+i$ment so() /P158!400 J P21!&%0
180!3%0
oreign c+rrency /cash cco+nts recei,ab(e orex gain o sett(e acco+nts recei,ab(e /300!000 x P0.735
220!500
21!&%0
22%!&20
180!3%0
Koss on ca(( o$tion or9ar) contract $ayab(e o recor) change in ,a(+e of the -+ne 1 or9ar) ontract
