Prepare leighs journal entries on december 16 december 31

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Reference no: EM13967724

Leigh of New York sells its products to customers in the United States and the United Kingdom, On December 16, 2013, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 28,000 pounds. The exchange rate on that day for £1 was $2.0141. On December 31, 2013, when Leigh prepared its financial statements. The rate was £1 for $2.0081. Bronson paid its bill in full on January 15, 2014, at which time the exchange rate was El for £2.0101. Leigh immediately exchanged the 28.000 pounds for U.S. dollars.

Prepare Leigh's journal entries on December 16, December 31, and January 15.

Create a Balance Sheet with this Trial Balance:

 

Debits

Credits

Cash

$713.083

 

Inventory

$1.500

 

Prepaid Rent

$11.000

 

Prepaid Insurance

$8.000

 

Cost Goods Sold

$78.500

 

Accounts Receivable

$60.000

 

Equipment

$300.000

 

Rent Expense

$1.000

 

Interest Expense

$417

 

Salary Expense

$30.000

 

Depreciation Expense

$36,000

 

Utility Expense

$1,500

 

Accumulated Depreciation

$36.000

Sales Revenue

 

$120.000

Account Payable

 

$30.000

Notes Payable

 

$50.000

Deferred Renvenue

 

$5.000

Commcn Stock

 

$1_000.000

Total

$1.241,000

$1.241.000

Reference no: EM13967724

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