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    McKenzie W
    Lisbeth purchases $14,000 of inventory from a foreign supplier on December 15, paying in the supplier's currency of shillings. On December 31 and January 25, Lisbeth records foreign exchange losses as the exchange rate fluctuates, increasing her liability. On January 25, Lisbeth pays $16,500 cash to settle her shilling liability after 45 days.

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    McKenzie W
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    Lisbeth purchases $14,000 of inventory from a foreign supplier on December 15, paying in the supplier's currency of shillings. On December 31 and January 25, Lisbeth records foreign exchange losses as the exchange rate fluctuates, increasing her liability. On January 25, Lisbeth pays $16,500 cash to settle her shilling liability after 45 days.

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    accounting

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    Lisbeth purchases $14,000 of inventory from a foreign supplier on December 15, paying in the supplier's currency of shillings. On December 31 and January 25, Lisbeth records foreign exchange losses as the exchange rate fluctuates, increasing her liability. On January 25, Lisbeth pays $16,500 cash to settle her shilling liability after 45 days.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    20 views2 pages

    Date Account Debit Credit

    Uploaded by

    McKenzie W
    Lisbeth purchases $14,000 of inventory from a foreign supplier on December 15, paying in the supplier's currency of shillings. On December 31 and January 25, Lisbeth records foreign exchange losses as the exchange rate fluctuates, increasing her liability. On January 25, Lisbeth pays $16,500 cash to settle her shilling liability after 45 days.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    December 15, 2020 Lisbeth (US) purchases inventory from foreign supplier for 50,000 shillings.

    Agrees to pay in 45 days, after

    Date Rate Apcte


    15-Dec-20 $ 0.28 Sale (Asset) Gain
    31-Dec-20 $ 0.30 Purchase (Liability) Loss
    25-Jan-21 $ 0.33
    31-Jan-21 $ 0.34

    Date Account Debit Credit


    15-Dec-20 Inventory $ 14,000 50000*.28
    A/P (shillings) $ 14,000

    31-Dec-20 FX Loss $ 1,000 (0.30-0.28)*50000


    A/P (shillings) $ 1,000

    25-Jan-21 FX Loss $ 1,500 (0.33-0.30)*50000


    A/P (shillings) $ 1,500

    A/P (shillings) $ 16,500 50000*0.33


    Cash $ 16,500
    es to pay in 45 days, after it sells inventory. Pays January 25, 2021.

    Dprcte
    Loss
    Gain

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