Revalue foreign currency payable to us dollar


On September 3, 2008, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The transaction is denominated in Swiss francs (SFr). The payment is made on October 10. The exchange rates were:

September 3: 1 Swiss franc = $.85
October 10: 1 Swiss franc =$.90

What entry is required to revalue foreign currency payable to U.S. dollar equivalent value on October 10?

On March 1, 2008, Wilson Corporation sold goods for a U.S. dollar equivalent of $31,000 to a Thai company. The transaction is denominated in Thai bahts. The payment is received on May 10. The exchange rates were:

March 1: 1 baht = $.031
May 10: 1 baht = $.034

What entry is required to revalue foreign currency payable to U.S. dollar equivalent value on May 10?

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Accounting Basics: Revalue foreign currency payable to us dollar
Reference No:- TGS050929

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