Acc401 Advanced Accounting: E12-6 Agentel Corporation is a U.S. -based importing-exporting company

Acc401 Advanced Accounting

Exercise 12-6
Agentel Corporation is a U.S. -based importing-exporting company. The company entered into the following transactions during the month of November.
Nov. 6 Purchased merchandise from AGT, a Swiss firm, for 600,000 francs.
5 Sold merchandise to SLS Inc, a firm located in rio De Janeiro, for $200,000.
18 Sold merchandise to TNT, Ltd., a British firm, for 130,000 pounds.
20 Purchased merchandise from SDS, Ltd., a British firm, for $160,000.
All the transactions were unsettled at December 31, Agentel's fiscal year-end. Spot rates are as follows:
Currency
Date Franc Real Pound
6-Nov 0.490 0.412 1.520
15-Nov 0.487 0.409 1.509
18-Nov 0.476 0.414 1.506
20-Nov 0.468 0.405 1.498
Nov-31 0.460 0.398 1.482

Required:
a. Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared at December 31.
b. Compute the transactions gain or loss on each unsettled receivable and payable that would be reported in the income statement prepared for the year ended December 31.
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