Set up the double-entry accounts showing the appropriate debits and credits associated with the following transactions: a. ConAgra, a U.S. agribusiness, exports $80 million of soybeans to China and receives payment in the form of a check drawn on a U.S. bank. b. The U.S. government provides refugee assistance to Somalia in the form of corn valued at $1 million

Set up the double-entry accounts showing the appropriate debits and credits associated with the following transactions: a. ConAgra, a U.S. agribusiness, exports $80 million of soybeans to China and receives payment in the form of a check drawn on a U.S. bank. b. The U.S. government provides refugee assistance to Somalia in the form of corn valued at $1 million

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

Balance of payments accounting. For the following international transactions, identify the balance of payments accounts and whether the transaction would generate an inflow or an outflow of foreign exchange for the two countries involved. ■ The Colombian drug cartel delivers 100 kg of heroin to its distributor in Miami, who pays $25 million in cash.
Identify whether each of the following is a debit or a credit in Mexico’s BOP and indicate where the item would be classified.( Specifically indicate the account and the item as credit or debit) d) Mexico receives $10 million in foreign aid from the United States. e) Mexican citizens deposit $5 million in Citibank account in New York. f) Mexico imports $110 million worth of goods. g) Mexican firms borrow $45 million by issuing bonds in the United States. h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico. h) The Mexican Central bank buys $15 million in U.S. Treasury bills. Suppose that these are all of the entries in Mexico’s BOP table. State if Mexico is net lender or borrower vis- a -vis the rest of the world? Calculate the value of errors and omissions. Thanks.
ABC beauty Group, incorporated in China, has its head office in China. It operates several beauty retailing shops in China, Malaysia and Indonesia, and the operations are financed by local letters of credit or bank loans from the respective location. ABC sources its beauty products from France and United States and settles payable in euros and US Dollar. All the net cash inflows after deducted the local operating expenses are remitted to China. Required: Discuss which currency should be used as ABC’s functional currency
For each of the following, identify in which part of the Egyptian balance-of-payments account it appears and whether it is a receipt or payment: (4 marks) A $50 million gift from Saudi Arabia An American's purchase of Oriental Weavers rugs. Bank Misr borrowing from a bank in Switzerland. A Swiss family decided to spend their vacation in Luxor & Aswan
Balance-of-payments double-entry bookkeeping. Show how the following transactions should be recorded in the U.S. balance of payments using a double-entry accounting system: ■ Newmont Mining—a U.S. mining concern—exports $400 million worth of copper to China and is paid in the form of a payment drawn on a U.S. bank. ■ DuPont expands its plastics manufacturing capacity in its Polish plant by investing $250 million financed by a dollar bond issue in London (United Kingdom). ■ The central bank of the People’s Bank of China purchases $2.5 billion in the foreign exchange market to slow down the appreciation of the renmimbi. The dollars are invested in five-year U.S. Treasury bonds. ■ The U.S. government provides food assistance to Sudanese refugees in the amount of $25 million worth of flour.
The table shows an abridged form of the Canada's balance of payments accounts. Place the various international transactions in the corresponding categories. Please note that not all blanks need to be filled and not all transactions need to be placed. Transfers (A) Factor income (B) Payments to foreigners Payments from foreigners Answer Bank a Canadian company makes a payment to a German IT consultancy the Bank of Canada buys $2 billion in euros a Canadian car company buys out a rival domestic manufacturer Sales and purchases of goods and services (C) Current account (A + B + C) Private sales and purchases of assests (D) Official asset sales and purchases (E) Financial account (D + E) an English company purchases a Canadian confectionary manufacturer the profits of a Japanese camera-manufacturing plant operating in Canada. the wages of a Canadian permanently working in Germany an Australian company buys steel from Canada the wages of a Canadian working a three-month contract in…
Upon arrival at the international airport in the country of Canteberry, Charles Alt exchanged $340 of U.S. currency into 850 florins, the local currency unit. Upon departure from Canteberry's international airport on completion of his business, he exchanged his remaining 110 florins into $33 of U.S. currency. Required: a. Determine the currency exchange rates for each of the cells in the following matrix for Charles Alt's business trip to Canteberry. (Round your answers to 2 decimal places.) fl= florins Direct exchange rate Indirect exchange rate fl Foreign currency transaction Arrival Date fl Departure Date c. Did Charles experience a foreign currency transaction gain or a loss on the 110 florins he held during his visit to Canteberry and converted to U.S. dollars at the departure date? (Round your intermediate computations and final answers to two decimal places)
Differentiate between Riba-al-Nasia and Riba-al-Fadl with examples of each. What is the role of Market Practice in Riba? During COVID-19, following economic relief packages were delivered by different states. Ehsaas Emergency Cash program has been launched by the Prime Minister of Pakistan on April 1, 2020. United States issued $1200 checks to Americans. The UK government committed £30 billion to saving jobs and helping the young find work in an economy ravaged by the corona virus pandemic. Do you find any type of Riba involved in any of these packages? If yes, which one? How? (you can explore the details of these packages).
1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar-equivalent value of $8,400 to be paid on June 20. The exchange rates were May 1 June 20 2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,000, to be received on August 10. Brazil's local currency unit is the real. The exchange rates were July 1 August 10 Required: a. Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. b. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real). Answer is not complete. Complete this question by entering your answers in the tabs below. No Required A Required B Assume that the two transactions are denominated in the…
Al Kimyani Computer Hardware Company in Oman has made an order to receive RO 25000 worth of goods from Zakaria Exporters L.L.C. Dubai. A Bank Muscat has issued letter of credit to Zakaria Exporters L.L.C. on behalf of the bank customer Al Kimyani Computer Hardware Company. In this transaction Bank Muscat has: a. Providing a guarantee to exporter for confirmation of payment b. Providing a guarantee to middleman for confirmation of payment c. Providing a guarantee to importer for confirmation of payment d. Providing a guarantee to employees for confirmation of payment
Harris Incorporated had the following transactions: On May 1, Harris purchased parts from a Japanese company for a U.S. dollar–equivalent value of $7,000 to be paid on June 20. The exchange rates were May 1 1 yen = $0.0070 June 20 1 yen = 0.0075 On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,400, to be received on August 10. Brazil’s local currency unit is the real. The exchange rates were July 1 1 real = $0.20 August 10 1 real = 0.22 Required: Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real).
Corporation Y, which is located in the USA, sold merchandise to Poland on credit in a transaction that was settled in Polish Zlotis and will be paid early next year. And you are preparing your financial statements for the current year and the staff in the accounting department is unclear on which method to use to present the balances in dollars. What procedure must be followed to determine the amount to be reported in the financial statement? Remeasurement Currency transfer Coversion Translation