APPENDIX D

Ex. D–1

Mar. 9 Accounts Receivable........................................... 3,600

Sales.................................................................. 3,600
Cost of Merchandise Sold................................... 2,100
Merchandise Inventory.................................... 2,100
Apr. 8 Cash....................................................................... 3,900
Accounts Receivable....................................... 3,600
Exchange Gain................................................. 300
July 13 Accounts Receivable........................................... 3,780
Sales.................................................................. 3,780
Cost of Merchandise Sold................................... 2,400
Merchandise Inventory.................................... 2,400
Aug. 17 Cash....................................................................... 3,510
Exchange Loss..................................................... 270
Accounts Receivable....................................... 3,780

Ex. D–2

Oct. 3 Merchandise Inventory........................................ 19,800

Accounts Payable............................................ 19,800
Nov. 2 Accounts Payable................................................ 19,800
Exchange Loss..................................................... 400
Cash................................................................... 20,200
29 Merchandise Inventory........................................ 15,000
Accounts Payable............................................ 15,000
Dec. 19 Accounts Payable................................................ 15,000
Cash................................................................... 14,700
Exchange Gain................................................. 300

841
Prob. D–1

1. Feb. 10 Accounts Receivable—Manco Company............ 10,800

Sales.................................................................. 10,800
Cost of Merchandise Sold.................................... 6,000
Merchandise Inventory.................................... 6,000
Mar. 12 Cash........................................................................ 10,200
Exchange Loss...................................................... 600
Accounts Receivable—Manco Company...... 10,800
20 Merchandise Inventory......................................... 13,000
Accounts Payable—Fossum Inc.................... 13,000
Apr. 11 Accounts Payable—Fossum Inc.......................... 13,000
Cash................................................................... 12,600
Exchange Gain................................................. 400
June 27 Accounts Receivable—Hu Company.................. 6,400
Sales.................................................................. 6,400
Cost of Merchandise Sold.................................... 3,800
Merchandise Inventory.................................... 3,800
July 27 Cash........................................................................ 6,800
Accounts Receivable—Hu Company............. 6,400
Exchange Gain................................................. 400
Oct. 8 Merchandise Inventory......................................... 32,000
Accounts Payable—Chevalier Company....... 32,000
Nov. 7 Accounts Payable—Chevalier Company............ 32,000
Exchange Loss...................................................... 500
Cash................................................................... 32,500

842
Prob. D–1 Concluded

Dec. 15 Accounts Receivable—Cassandra Company.... 78,000

Sales.................................................................. 78,000
Cost of Merchandise Sold.................................... 50,000
Merchandise Inventory.................................... 50,000
16 Merchandise Inventory......................................... 8,500
Accounts Payable—Juan Company.............. 8,500
31 Accounts Receivable—Cassandra Company.... 1,200
Exchange Gain................................................. 1,200
$120,000 Canadian × $0.01 increase in
exchange rate.
31 Exchange Loss...................................................... 500
Accounts Payable—Juan Company.............. 500
500,000 pesos × $0.001 increase in
exchange rate.

2. Jan. 15 Accounts Payable—Juan Company.................... 9,000

Cash................................................................... 8,000
Exchange Gain................................................. 1,000
17 Cash........................................................................ 80,400
Accounts Receivable—Cassandra Company
79,200
Exchange Gain................................................. 1,200

843