Journal Questions
Available-for-sale, Trade Currency TWD
Taiwan Opportunities Fund traded in Feng Tay Enterprises Co. Ltd., shares in the Taiwan stock exchange through KGI Securities Co., brokers, and the details are as follows:
Trade Details
Date Product Quantity Rate B/S Brokerage
5-Feb-X1 Feng Tay 64,000 27.30 TWD B 5,350 TWD
15-Feb-X1 Feng Tay 30,500 26.25 TWD B 2,850 TWD
5-Mar-X1 Feng Tay 85,700 25.85 TWD S 4,750 TWD
Other Details
Settlement: T + 3
Liquidation Method
FIFO
Market Rate of Feng Tay Shares in TWD
February 28: 26.95
March 31: 27.90
April 30: 30.15
FX Rate: USD/TWD
February 5: 32.67
February 8: 32.63
February 15: 32.76
February 18: 32.79
February 28: 32.98
March 5: 32.83
March 8: 32.87
March 31: 32.90
April 30: 32.77
Functional Currency
USD
Prepare
Journal entries, general ledgers, trial balance, income statement, and balance sheet.
Available-for-sale, Trade Currency SGD
Singapore Fund traded in OCBC LTD shares in a Singapore Stock Exchange through Grayson & Co. brokers, and the details are as follows:
Trade Details
Date Product Quantity Rate B/S Brokerage
8-Feb-X1 OCBC LTD 6,000 9.30 SGD B 558 SGD
15-Feb-X1 OCBC LTD 8,000 10.10 SGD B 800 SGD
9-Mar-X1 OCBC LTD 11,500 10.30 SGD S 271 SGD
Other Details
Settlement: T + 3
Liquidation Method
FIFO
Market Rate of OCBC LTD Shares in SGD
February 28: 10.15
March 31: 9.80
April 30: 10.35
FX Rate: USD/SGD
February 8: 1.54
February 11: 1.52
February 15: 1.51
February 18: 1.53
February 28: 1.52
March 9: 1.55
March 12: 1.53
March 31: 1.50
April 31: 1.54
Functional Currency
USD
Prepare
Journal entries, general ledgers, trial balance, income statement, and balance sheet.
Available-for-sale, Functional Currency CAD
U.S. Fund traded in DSP shares in a Canadian stock exchange through Amazon brokers, and the details are as follows:
Trade Details
Date Product Quantity Rate B/S Brokerage
18-Feb-X1 DSP 5,000 15.15 CAD B 50 CAD
25-Feb-X1 DSP 8,000 16.10 CAD B 80 CAD
19-Mar-X1 DSP 7,500 16.30 CAD S 75 CAD
Other Details
Settlement: T + 3
Liquidation Method
FIFO
Market Rate of DSP LTD Shares in CAD
February 28: 16.15
March 31: 16.80
April 30: 16.35
FX Rate: USD/CAD
February 18: 1.0130
February 25: 1.0185
February 28: 1.0150
March 19: 1.0220
March 31: 1.0245
April 31: 1.0190
Functional Currency
USD
Prepare
Journal entries, general ledgers, trial balance, income statement, and balance sheet.
Available-for-Sale, Functional Currency JPY
DiAnna Smith buys 10,000 shares of GoldWinner on January 10 for $5.4 per share. Ms. Smith’s reporting currency is Japanese yen. The shares are bought without any intention of trading for short-term gains. Record the necessary journal entries for the following events:
1. For the purchase of the 10,000 shares.
2. The closing rate of GoldWinner shares on January 25 is $6.2 per share. Record the unrealized gains or loss entry.
3. The USD/JPY rate on January 10 is 109.15. The shares bought on January 10 are settled on January 12. On January 12 the USD/JPY rate is 108.05. Record the FX revaluation entries for these events. Calculate the FX gain/loss and pass relevant entries for FX translation.
4. The shares are sold on January 29 for $6.8 per share. Calculate the realized gain or loss and pass entry. The USD/JPY rate on liquidation is 109.24.
5. Prepare relevant ledger accounts to give effect to these transactions.
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