Response to the following problem:
Coyote Corp. (a U.S. company in Texas) had the following series of transactions in a foreign country during 2011:
Mar. 1 - bought inventory costing 60,000 pesos on credit
May 1 - sold 60% of the inventory for 54,000 pesos on credit
Aug. 1 - collected 48,000 pesos from customers
Sept. 1 - paid 36,000 pesos from customers
The appropriate exchange rates during 2011 were as follows:
Mar. 1 - $.20 = 1 peso
May 1 - $.22 = 1 peso
Aug 1 - $.23 = 1 peso
Sept. 1 - $.24 = 1 peso
Dec. 31 - $.25 = 1 peso
1. Prepare all journal entries in U.S. dollars along with any Dec. 31 adjusting entries. Coyote uses a perpetual inventory system.
2. What amount will Coyote Corp report in its 2011 balance sheet for Inventory?
3. What amount will Coyote Corp report in its 2011 income statement for Cost Of Goods Sold?
4. What amount will Coyote Corp report in its 2011 income statement for Sales?
5. What amount will Coyote Corp report in its 2011 balance sheet for Accounts Receivable?
6. What amount will Coyote Corp report in its 2011 balance sheet for Accounts Payable?
7. What amount will Coyote Corp report in its 2011 balance sheet for Cash?