Accounting Assignment (Steve Jobs)

Accounting Homework

Assignment Choice #1: ABC, Inc. Journal Entries

Assume the following spot exchange rates between the U.S. dollar and the British pound sterling:

April 1                                   $1.8685 April 30                                 $1.8258 May 31                                 $1.7740

On April 1, ABC, Inc., a U.S. international company, sells goods to a British importer for £1,000,000. Payment is to be received on May 31, and ABC, Inc. adjusts its financial statements quarterly. What are the journal entries for ABC, Inc. on April 1, April 30, and May 31? Was the dollar strengthening or weakening over the period of the contract?

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