Reference no: EM132572211

The Farmer Corporation engaged in the following transactions during 2014. Farmer uses a perpetual Inventory system Mar. 31 Purchased merchandise from an Dutch supplier at a cost of rate on this date was $ 1.30 per Euro 100,000 Euros. The exchange Apr. 19 Paid for the merchandise . The exchange rate on this date was $ 1.32 Euro May 11 Sold goods to a U.S. buyer at a selling price of $ 70,000 U.S. dollars . The exchange rate on this date was $ 1.02 Canadian dollars for each U.S. dollar Ignore the journal entry to record cost of goods sold Jun 15 Received payment from the buyer for the goods sold on June 10. The exchange rate on this date was $ 1.03 Canadian dollars for each U.S. dollar

Question a) Prepare the journal entries necessary to record each of the above transactions .

Question b) During the periods of time covered by the transactions was the Canadian dollar getting stronger or weaker relative to the Euro and the U.S. dollar ?