Solutions

1. c P4,000
Accounts Payable (FCU)
(200,000 x P.4875) 12/10/x4 97,500
AJE 4,000
(200,000 x P.4675) 12/31/x4 93,500

Accounts Payable (FCU) 4,000

Foreign Exchange Gain 4,000

2. d P280,000 = July 1, 20x5, Peso equivalent value

-240,000 = December 31, 20x4, Peso equivalent value
P 40,000 Foreign currency transaction loss

3. d
20x4: (P.5395 – P.5445) loss x 70,000 FCU = P350 loss
20x5: (P.5445 - .P5495) loss x 70,000 FCU = P350 loss

4. b - 30,000 x P.67 = P20,100; P20,100 - P20,400 = P300 loss

5. b
Date of transaction (7/3) P 1.58
Balance sheet date (8/31) 1.55
Foreign exchange currency gain per FCU P .03
Multiplied by: No. of FCU 375,000
Foreign exchange currency gain P 11,250

6. b
Date of transaction (3/1) : P31,000 / P.31 = 100,000 FC P . 31
Date of settlement (5/10) .34
Foreign exchange currency gain per FC P .03
Multiplied by: No. of FC 100,000
Foreign exchange currency gain P 3,000

7. P4,000 gain
12/12/x6: Date of transaction – spot rate P .20
12//31/x6: Balance sheet date .24
Foreign exchange currency gain per FC P 0.04
Multiplied by: No. of FC 100,000
Foreign exchange currency gain P 4,000

8. P5,000 gain
9/30/x6: Date of transaction – spot rate P .90
12//31/x6: Balance sheet date .85
Foreign exchange currency gain per FC P 0.05
Multiplied by: No. of FC 100,000
Foreign exchange currency gain P 5,000

9. d
20x4: (P.5395 – P.5445) loss x 70,000 FCU = P350 loss
20x5: (P.5445 - .P5495) loss x 70,000 FCU = P350 loss

10. P188,500 – spot rate on the date of transaction (date of purchase)– 6,500,000 x P0.029
11. P26,000 exchange gain – (P0.029 – P0.025) x 6,500,000
12. P162,500 – spot rate on the date of settlement – P0.025 x 6,500,000 = P162,500
13. P87,376 – spot rate on the date of transaction (date of sale) – P1.016 x 86,000 = P87,376
14. P516 exchange gain = (P1.022 – P1.016) x 86,000
15. P87,892 – spot rate on the date of settlement
16. P200,000 exchange gain = (P1.50 – P1.48) x 10,000,000 FCUs
17. P(500,000) exchange loss = (P1.45 – P1.50) x 10,000,000 FCUs
18. P136,920 = spot rate on the date of transaction (P1.1410 x 120,000 FCUs)
19. P137,400 = spot rate on the date of settlement (P1.1450 x 120,000 FCUs)
20. P360 exchange gain = (P1.420 – P1.450) x 120,000 FCUs
21. P480 exchange gain = (P1.1410 – P1.1450) x 120,000 FCUs
22. 20x3 - P1,000 gain; 20x4 - P500 loss
Account payable, Dec 05, 20x3
1,000,000 x P0.168 = 168,000
Account payable, Dec 31, 20x3
1,000,000 x P0.167 = 167,000
Gain 1,000

Account payable, Dec 31, 20x3 167,000

Account payable, at settlement 167,500
Realized loss 500

23. 150,000 FCUs x (1.60 – 1.62) = P(3,000) loss

24. 150,000 FCUs x 1.62 = P243,000
25. P1,042 foreign exchange loss
10/15/x5 Accounts receivable 16,667
Sales 20,000/P1.2 16,667
12/10/x5 No entry
12/13/x5 Cash 20,000/P1.28 15,625
Foreign exchange loss 1,042
Accounts receivable 16,667
26. P16,667 - refer to No. 25
27. P16,667
28. c
29. c