financeAccounting forms and a partial unadjusted trial balance for Spano Corporation are given in the *Working Papers*. After each journal entry, update the T accounts given in the *Working Papers*. Your instructor will guide you through the following examples.
On December 31, 20X1, Spano Corporation has one note receivable outstanding, a 120-day, 6%, $16,000.00 note dated November 16, and one note payable outstanding, a 90-day, 6%,$18,000.00 note dated December 1.
**Instructions:**
1. Journalize the adjusting entries for accrued interest income and accrued interest expense on December 31. Use page 14 of a general journal. financeMatthias Corp. had the following foreign currency transactions during 2020:
- Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $60,000 and paid the invoice on April 20 at the U.S. dollar equivalent of$50,000.
- On September 1, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lender’s local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was$320,000.
In Matthias’s 2020 income statement, what value should be included as a net foreign exchange gain or loss?
*a.* $10,000 gain
*b.*$10,000 loss
*c.* $20,000 gain
*d.*$30,000 loss 13th Edition•ISBN: 9780135225691 (1 more)Michael R Solomon449 solutions
10th Edition•ISBN: 9781337902571 (1 more)Eugene F. Brigham, Joel Houston777 solutions
13th Edition•ISBN: 9781260430479Arthur Getis, Daniel Montello, Mark Bjelland107 solutions
23rd Edition•ISBN: 9781305575080David Twomey, Marianne Jennings, Stephanie Greene369 solutions
