Question

Adjusting Entry at Balance Sheet Date

Answer 1

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