Exchange Gains and Losses
Response to the following problem:
On January 15, 2010, the Searle Company, a U.S. company, acquired machinery on credit from a British company for £12,000. The company paid for the machine on January 30, 2010. The exchange rates on January 15 and 30 were $1.85 and $1.80, respectively.
Required
Record the journal entries for the acquisition and payment by the Searle Company.