Page 110 - Finac1 Test 2 slides
P. 110
THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES
Example - Translation of foreign currencies
On 30 June 20.10, a South African company sold goods to
an American import company for $100 000. Payment was
made on 30 September 20.10. The year-end of the South
African company is 31 December.
Applicable exchange rates were as follows:
30 June 20.10 $1 = R6,80
30 September 20.10 $1 = R6,75
31 December 20.10 $1 = R6,70
REQUIRED
Provide all the relevant journal entries in the records of
the South African company for the year ended 31
December 20.10.
110
