The following information refers to questions 17 and 18 inclusively. On July 1, 2009 Canuck Ltd. sold inventory to its main foreign customer Euro Ltd., at a price of 10,000 Euros. Canuck Ltd.'s year end is on July 31. The exchange rates in effect at each of these dates are: Transaction Date: July 1, 2009: Year End Date: July 31, 2009: Settlement Date: Aug, 31, 2009: 17. What would be the amount of the foreign exchange gain or loss adjustment recorded at the Balance Sheet date? a. A $150 Exchange Gain. b. A $150 Exchange Loss. c. A $100 Exchange Gain. d. A $100 Exchange Loss. 1 Euro = $0.920 CDN. 1 Euro = $0.910 CDN. 1 Euro = $0.905 CDN. 18. What is the amount received from Euro Ltd. by Canuck Inc. at settlement? a. $10,000 CDN. b. $9,100 CDN. c. $9,050 CDN. d. $9,200 CDN.

The following information refers to questions 17 and 18 inclusively. On July 1, 2009 Canuck Ltd. sold inventory to its main foreign customer Euro Ltd., at a price of 10,000 Euros. Canuck Ltd.'s year end is on July 31. The exchange rates in effect at each of these dates are: Transaction Date: July 1, 2009: Year End Date: July 31, 2009: Settlement Date: Aug, 31, 2009: 17. What would be the amount of the foreign exchange gain or loss adjustment recorded at the Balance Sheet date? a. A $150 Exchange Gain. b. A $150 Exchange Loss. c. A $100 Exchange Gain. d. A $100 Exchange Loss. 1 Euro = $0.920 CDN. 1 Euro = $0.910 CDN. 1 Euro = $0.905 CDN. 18. What is the amount received from Euro Ltd. by Canuck Inc. at settlement? a. $10,000 CDN. b. $9,100 CDN. c. $9,050 CDN. d. $9,200 CDN.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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