The On Recording Balance Of Payment Essay examples

1109 Words Sep 23rd, 2015 null Page
Based upon recording balance of payment (BOP) transactions, determine whether or not the following is a debit, credit, or no entry to the U.S. Balance of Payment statement. Also determine what chart of account is affected (i.e., CA, KA, or OSB):
1. U.S. resident purchases Mercedes Benz C230, debit – U.S. & credit – Germany / CA
2. U.S. resident purchases Chevelot Impala, no entry – U.S. / CA
3. Foreigner purchases GE dryer, credit – U.S. and debit- foreign country unless the foreigner is living in the U.S. than no entry / CA
4. U.S. resident purchases UK stock, debit – U.S. & credit – UK / KA
5. U.S. resident borrows funds from British broker to purchase stock, debit – U.S. & credit – UK / OSB
According to Daniels, Radebaugh, & Sullivan (2015) a country’s balance of payments (BOP) officially known as the Statement of International Transactions, reports its trade and financial transactions (as conducted by individuals, businesses, and government agencies) with the rest of the world (p. 173). A chart of account is tool used by accounting to record whether a transaction is recorded as an asset, liability, equity, revenue or expense. Current account follows the sales of goods and services; capital account follows the loans and payments across countries, and other financial securities.
Part Two
Read the case study, pp. 759-762, “H&M: The Challenges of Global Expansion and the Move to Adopt International Financial Reporting Standards.” Answer questions 19-3 and 19-4 at the end…

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