Import/Export Company, a U.S. company, made a number of import purchases and export sales de-

nominated in foreign currency in 2010. Information related to these transactions is summarized in the following table. The company made each purchase or sale on the date in the Transaction Date column and made payment in foreign currency or received payment on the date in the Settlement Date column.

 

  Fo r eign Cur r ency	  T ype of T ransaction	Amount in Fo r eign Cur rency	T ransaction Date	Settlement Date
Brazilian real (BRL)	Import purchase	(87,000)	1/4/2010	5/4/2010
Swiss franc (CHF)	Export sale	51,700	1/4/2010	5/4/2010
Swiss franc (CHF)	Import purchase	(55,000)	5/4/2010	10/4/2010
Euro	Export sale	37,200	4/1/2010	9/1/2010
Euro	Export sale	37,200	4/1/2010	10/1/2010
Chinese yuan (CNY)	Import purchase	(342,000)	1/4/2010	10/4/2010
South Korean won (KRW)	Import purchase	(55,600,000)	1/4/2010	10/4/2010

 

Requi r ed

1. Create an electronic spreadsheet with the information from the preceding table. Label columns as follows:

Foreign Currency

Type of Transaction

Amount in Foreign Currency

Transaction Date

Exchange Rate at Transaction Date

$ Value at Transaction Date

Settlement Date

Exchange Rate at Settlement Date

$ Value at Settlement Date

Foreign Exchange Gain (Loss)

2. Use historical exchange rate information available on the Internet at www.x-rates.com, Historic Lookup, to find the 2010 exchange rates between the U.S. dollar and each foreign currency on the relevant transaction and settlement dates.

3. Complete the electronic spreadsheet to determine the foreign exchange gain (loss) on each transaction. Determine the total net foreign exchange gain (loss) reported in Import/Export Company’s 2010 income statement.