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    Fox Games Is A U S Company That Manufacturers Computer Game

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    trilocksp Singh
    Fox Games is a US company that manufactures computer game consoles. It purchases components from abroad and sells finished consoles internationally. The summary lists transactions including purchasing parts from a Japanese company, selling consoles to a UK company and Norwegian company, and adjusting accounts at year-end for foreign payables and receivables due to exchange rate fluctuations.

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    Fox Games Is A U S Company That Manufacturers Computer Game

    Uploaded by

    trilocksp Singh
    49 views1 page
    Fox Games is a US company that manufactures computer game consoles. It purchases components from abroad and sells finished consoles internationally. The summary lists transactions including purchasing parts from a Japanese company, selling consoles to a UK company and Norwegian company, and adjusting accounts at year-end for foreign payables and receivables due to exchange rate fluctuations.

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    Fox Games is a US company that manufactures computer game consoles. It purchases components from abroad and sells finished consoles internationally. The summary lists transactions including purchasing parts from a Japanese company, selling consoles to a UK company and Norwegian company, and adjusting accounts at year-end for foreign payables and receivables due to exchange rate fluctuations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    49 views1 page

    Fox Games Is A U S Company That Manufacturers Computer Game

    Uploaded by

    trilocksp Singh
    Fox Games is a US company that manufactures computer game consoles. It purchases components from abroad and sells finished consoles internationally. The summary lists transactions including purchasing parts from a Japanese company, selling consoles to a UK company and Norwegian company, and adjusting accounts at year-end for foreign payables and receivables due to exchange rate fluctuations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Fox Games is a U S company that manufacturers computer

    game
    Fox Games is a U.S. company that manufacturers computer game consoles. Many of the
    components for the consoles are purchased abroad, and the finished product is sold in foreign
    countries as well as in the United States. Among the recent transactions of Fox are the
    following:Oct. 25 Purchased from Sutaki, a Japanese company, 15,000 parts. The purchase
    price was ¥120,000,000, payable in 30 days. Current exchange rate, $0.01 per yen. (Fox uses
    the perpetual inventory method; debit the Inventory of Raw Materials account.) Nov. 15 Sold
    500 consoles to British Vibes for £200,000, due in 30 days. The cost of the consoles, to be
    debited to the Cost of Goods Sold account, was $160,000. Current exchange rate, $1.60 per
    British pound. (Use one compound journal entry to record the sale and the cost of goods sold.
    In recording the cost of goods sold, credit Inventory of Finished Goods.) Nov. 24 Issued a check
    to Inland Bank for $1,150,000 in full payment of account payable to Sutaki. Dec. 4 Purchased
    5,000 black cases from Swiss Plastics for SFr80,000, payable in 60 days. Current exchange
    rate, $0.70 per Swiss franc. (Debit Inventory of Raw Materials.) Dec. 15 Collected dollar-
    equivalent of £200,000 from British Vibes. Current exchange rate, $1.55 per British pound. Dec.
    21 Sold 6,000 game consoles to Sounds, a Norwegian retail chain, for NOK40,000,000, due in
    30 days. Current exchange rate, $0.20 per Norwegian krone. The cost of the consoles, to be
    debited to Cost of Goods Sold and credited to Inventory of Finished Goods, is $5,000,000.
    Instructions a. Prepare in general journal form the entries necessary to record the preceding
    transactions. b. Prepare the adjusted entries needed at December 31 for the SFr80,000 account
    payable to Swiss Plastics and the NOK40,000,000 account receivable from Sounds. Year-end
    exchange rates, $0.68 per Swiss franc and $0.18 per Norwegian krone. (Use a separate journal
    entry to adjust each account balance.) c. Compute (to the nearest dollar) the unit sales price of
    consoles in U.S. dollars in both the November 15 and the December 21 sales transaction. (The
    sales price may not be the same in each transaction.) d. Compute the exchange rate for the
    yen, stated in U.S. dollars, on November 24. e. Explain how Fox Games could have hedged its
    position to reduce the risk of loss from exchange rate fluctuations on (1) Its foreign payables
    and (2) Its foreign receivables.View Solution:
    Fox Games is a U S company that manufacturers computer game
    SOLUTION-- http://solutiondone.online/downloads/fox-games-is-a-u-s-company-that-
    manufacturers-computer-game/

    Unlock answers here solutiondone.online


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