Leigh of New York sells its products to customers in the United States and the United Kingdom, On December 16, 2013, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 28,000 pounds. The exchange rate on that day for £1 was $2.0141. On December 31, 2013, when Leigh prepared its financial statements. The rate was £1 for $2.0081. Bronson paid its bill in full on January 15, 2014, at which time the exchange rate was El for £2.0101. Leigh immediately exchanged the 28.000 pounds for U.S. dollars.
Prepare Leigh's journal entries on December 16, December 31, and January 15.
Create a Balance Sheet with this Trial Balance:
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Debits
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Credits
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Cash
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$713.083
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Inventory
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$1.500
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Prepaid Rent
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$11.000
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Prepaid Insurance
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$8.000
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Cost Goods Sold
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$78.500
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Accounts Receivable
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$60.000
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Equipment
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$300.000
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Rent Expense
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$1.000
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Interest Expense
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$417
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Salary Expense
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$30.000
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Depreciation Expense
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$36,000
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Utility Expense
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$1,500
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Accumulated Depreciation
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$36.000
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Sales Revenue
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$120.000
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Account Payable
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$30.000
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Notes Payable
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$50.000
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Deferred Renvenue
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$5.000
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Commcn Stock
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$1_000.000
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Total
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$1.241,000
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$1.241.000
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