Answer:
The entries are prepared and explained in the explanations.
Explanation:
The question is to prepare the adjusting entries recorded by Yum! Brand
Number 1:
Account Items Debit Credit
Cash $60,000
Foreign Exchange loss $5,000
Accounts Receivable $65,000
(1,000,000 x 0.06= $60,000
65,000 - 60,000= $5,000 loss)
Number 2:
Account Items Debit Credit
Cash $168,750
Account Receivable $165,000
Foreign Exchange gain $3,750
225,000 x 0.75= 168, 750
$168,750- $165,000 = $3,750
Number 3:
Account Items Debit Credit
Accounts Payable $556,000
Foreign Exchange loss $8,000
Cash $564,000
400,000 x $1.41 = $564,000
564,000-556,000= $8,000
Number 4:
Account Items Debit Credit
Accounts Payable $56,000
Foreign Exchange gain $2,000
Cash $54,000
200,000 x $0.27= $54,000
56,000- 54,000=$4000
