Describe the rationale for each entry, utilizing GAAP standards when possible.

OPTION #1: EXCHANGE RATES

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos in an amount of 150,000 Pesos. Your company operates on a calendar year basis.

Assume the following exchange rates and dates:

December 15……………..$0.04:1 Peso

December 31……………..$0.05:1 Peso

March 15…………………..$0.06:1 Peso

Submission Requirements:

Prepare a PowerPoint slide presentation illustrating the following:

• The journal entry by your company on December 15, the adjusting entry on December 31, and the payment entry on March 15.
• Note an explanation of the transaction after each journal entry.
• Describe the rationale for each entry, utilizing GAAP standards when possible.
• Review the grading rubric following this assignment, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.