Elbambo | Linaac | Malatray

LS 170 - X
Exercise In Foreign Exchange Accounting
1. What is the accounting entry in pesos on October 1, 2015 when the L/C is opened?
Dr. Purchase - Import
Cr. A/P

P 4,550,000
P4,550,000

2. What is the accounting entry in pesos on October 31, 2015, the end of the fiscal year?
Dr. Loss from Forex
Cr. A/P

P 45,000
P45,000

3. What is the accounting entry in pesos on January 31, 2016, when payment is made?
Dr. A/P
Loss from Forex
Cr. Cash

P 4,550,000
P 125,000
P4,675,000

4. What is the accounting entry of the US exporting company is US dollars on October 1,

2015?
Dr. A/R
Cr. Sales - Exports

P4,550,000
P4,550,000

5. What is the accounting entry of the US exporting company in US dollars on October 31,
2015, assuming that its fiscal year ends also on October 31?
No collection yet
6. What is the accounting entry of the US exporting company in US dollars on January 31,
2016, when collection is made?
Dr. Cash
Cr. A/R
Gain on Forex

P4,675,000
P4,550,000
P125,000