Q-1)North Company keeps its accounts in TL. On September 1, 2020, the company purchased machinery for100,000 Swiss Francs (CHF) from a Swiss Company on account, 1 CHF
was equal to 11TL. On December 31, 2020, 1 CHF was equal to 12TL, and on December 31, 2021, 1 CHF was equal to 8TL.
Required:
1a)Make the journal entries of the NorthCompany related to the transactions above.
1b)Now change the PURCHASE PRICE OF THE MACHINERY(in other words, find another purchase price other than100,000 CHF ON YOUR OWN), and then make the journal entries of
the NorthCompany related to the transactions above once again
Sample Solution