Abc corp "USA" purchased goods on account for 1,500 British pounds at spot rate $1.50. When settled debt, spot rate was $1.45. Make journal entries?

Purchases $2,250  (1500*1.50) When purchased the spot rate was $1.50

   A/c Payable       $2,250

 

A/c Payable $2,250

        Cash                                  $2,175 (1500*1.45) When paid the spot rate was $1.45 

        Currency exchange gain       $750                                    

 

75 exchange gain is correct 

 

Purchase entry: Purchase.15000 dr. Account payable.15000 cr. Note:15000 pound dollar spot rate1.45$15000*1.45$ =21750$ When paid: Account payable.21750$ dr. Exchange loss.750$ dr. Cash.22500$ cr. Note: dollar value down against pound when payment maid.