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Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A
929
Appendix 15A
Investments in International Operations
QUESTIONS
15A. If the foreign exchange rate falls from $1.40 to $1.30 during the time the U.S.
company holds a receivable that is denominated in the foreign currency, the U.S.
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A
QUICK STUDIES
Quick Study 15-17A (10 minutes)
Date of Sale
Accounts Receivable ....................................................
14,500
Quick Study 15-18A (10 minutes)
Mar. 1
Account Receivable—Hamac .......................................
9,076
Sales .........................................................................
9,076
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A
931
EXERCISES
Exercise 15-16A (25 minutes)
2017
Dec. 16
Accounts Receivable⎯Bronson Ltd. ..........................
24,791
932
Exercise 15-17A (25 minutes)
Quarter ended June 30, 2017
May 8 recorded amount (800,000 x $0.1323) ......................
$105,840
Quarter ended September 30, 2017
Quarter ended December 31, 2017
Quarter ended March 31, 2018
Note — The combined net gain for all four quarters equals:
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A
933
PROBLEM SET A
Problem 15-6AA (60 minutes)
Part 1
2017
Apr. 8
Cash ..........................................................................................
5,938
Sales ...................................................................................
5,938
Nov. 18
Cash ..........................................................................................
13,800
Foreign Exchange Loss ..........................................................
300
Accounts Receivable⎯Sumito .........................................
14,100
(1,500,000 yen x $0.0092/yen)
Dec. 20
Accounts Receivable⎯Hamid Albar ......................................
7,652
934
Problem 15-6AA (Continued)
2018
Jan. 12
Cash* .........................................................................................
27,928
Accounts Receivable⎯Smithers** ...................................
27,778
Part 3
To reduce the risk of foreign exchange gain or loss, Doering could attempt
to negotiate foreign customer sales that are denominated in U.S. dollars.
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A
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PROBLEM SET B
Problem 15-6BA (60 minutes)
Part 1
2017
May 26
Accounts Receivable—Fuji ....................................................
60,450
936
Problem 15-6BA (Concluded)
2018
Part 2
Foreign exchange gain reported on 2017 income statement
Part 3
To reduce the risk of foreign exchange gain or loss, Datamix could attempt
to negotiate foreign customer sales that are denominated in U.S. dollars.
