Charin Corporation, a U.S. corporation, imports and exports small electronics. On December 1, 2014, Charin purchased components from an Egyptian manufacturer amounting to 500,000 Egyptian pounds. The purchase is payable in Egyptian pounds. At December 30, Charin wanted to take advantage of favorable exchange rates, but did not have the full amount required to pay off the entire amount. Charin wired the funds to pay off half of the balance owed, and expected to pay the remaining balance on January 3, 2015. Charin paid the remaining balance on January 3, 2015.
The respective exchange rates were as follows:
Required:
Document the journal entries related to these transactions for the four dates shown. If no entry is required, record "no entry."

Question

Charin Corporation, a U.S. corporation, imports and exports small electronics. On December 1, 2014, Charin purchased components from an Egyptian manufacturer amounting to 500,000 Egyptian pounds. The purchase is payable in Egyptian pounds. At December 30, Charin wanted to take advantage of favorable exchange rates, but did not have the full amount required to pay off the entire amount. Charin wired the funds to pay off half of the balance owed, and expected to pay the remaining balance on January 3, 2015. Charin paid the remaining balance on January 3, 2015.
The respective exchange rates were as follows:
  Required:
Document the journal entries related to these transactions for the four dates shown. If no entry is required, record "no entry."

Quizplus · Accepted Answer

The Answer of Charin Corporation, a U.S. corporation, imports and exports small electronics. On December 1, 2014, Charin purchased components from an Egyptian manufacturer amounting to 500,000 Egyptian pounds. The purchase is payable in Egyptian pounds. At December 30, Charin wanted to take advantage of favorable exchange rates, but did not have the full amount required to pay off the entire amount. Charin wired the funds to pay off half of the balance owed, and expected to pay the remaining balance on January 3, 2015. Charin paid the remaining balance on January 3, 2015.
The respective exchange rates were as follows:
  Required:
Document the journal entries related to these transactions for the four dates shown. If no entry is required, record "no entry."