Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 112,000 pesos on credit. May 1 Sold 80 percent of the inventory for 92,000 pesos on credit. August 1 Collected 76,000 pesos from customers. September 1 Paid 66,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.21 May 1 0.22 August 1 0.23 September 1 0.24 December 31 0.25 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a. Inventory b.Cost of goods sold c. Sales
Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 112,000 pesos on credit. May 1 Sold 80 percent of the inventory for 92,000 pesos on credit. August 1 Collected 76,000 pesos from customers. September 1 Paid 66,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.21 May 1 0.22 August 1 0.23 September 1 0.24 December 31 0.25 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a. Inventory b.Cost of goods sold c. Sales
Chapter9: Taxation Of International Transactions
Section: Chapter Questions
Problem 27P
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Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020:
March 1 | Bought inventory costing 112,000 pesos on credit. |
May 1 | Sold 80 percent of the inventory for 92,000 pesos on credit. |
August 1 | Collected 76,000 pesos from customers. |
September 1 | Paid 66,000 pesos to suppliers. |
Currency exchange rates for 1 peso for 2020 are as follows:
Date | U.S. Dollar per Peso | ||
March 1 | $ | 0.21 | |
May 1 | 0.22 | ||
August 1 | 0.23 | ||
September 1 | 0.24 | ||
December 31 | 0.25 | ||
Assume that all receipts were converted into dollars as soon as they were received.
For each of the following accounts, what amount will Voltac report on its 2020 financial statements?
a. Inventory
b.Cost of goods sold
c. Sales
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