Piel Corporation (a U.S.company)began operations on January 1,2011,when common stock was issued for $250,000.In the first two months of operations,Piel had the following transactions:
January 15,2011 Bought inventory for 100,000 Mexican pesos on account
January 26,2011 Sold 70% of inventory acquired on 1/15/11 for 44,000 Saudi riyals on account
January 27,2011 Paid $1,000 in other operating expenses
February 2,2011 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S.company.
February 15,2011 Acquired and paid the 100,000 pesos owed to the Mexican supplier
February 21,2011 Paid $1,500 in other operating expenses
February 28,2011 Collected the 44,000 riyals from the Saudi customer and immediately converted them into U.S.dollars
The following exchange rates apply:
Required:
Complete the summary income statement and balance sheet for the month ended January 31,2011 and February 28,2011,assuming there were no other transactions.

Question

Piel Corporation (a U.S.company)began operations on January 1,2011,when common stock was issued for $250,000.In the first two months of operations,Piel had the following transactions:
January 15,2011 Bought inventory for 100,000 Mexican pesos on account
January 26,2011 Sold 70% of inventory acquired on 1/15/11 for 44,000 Saudi riyals on account
January 27,2011 Paid $1,000 in other operating expenses
February 2,2011 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S.company.
February 15,2011 Acquired and paid the 100,000 pesos owed to the Mexican supplier
February 21,2011 Paid $1,500 in other operating expenses
February 28,2011 Collected the 44,000 riyals from the Saudi customer and immediately converted them into U.S.dollars
The following exchange rates apply:
  Required:
Complete the summary income statement and balance sheet for the month ended January 31,2011 and February 28,2011,assuming there were no other transactions.

Quizplus · Accepted Answer

The Answer of Piel Corporation (a U.S.company)began operations on January 1,2011,when common stock was issued for $250,000.In the first two months of operations,Piel had the following transactions:
January 15,2011 Bought inventory for 100,000 Mexican pesos on account
January 26,2011 Sold 70% of inventory acquired on 1/15/11 for 44,000 Saudi riyals on account
January 27,2011 Paid $1,000 in other operating expenses
February 2,2011 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S.company.
February 15,2011 Acquired and paid the 100,000 pesos owed to the Mexican supplier
February 21,2011 Paid $1,500 in other operating expenses
February 28,2011 Collected the 44,000 riyals from the Saudi customer and immediately converted them into U.S.dollars
The following exchange rates apply:
  Required:
Complete the summary income statement and balance sheet for the month ended January 31,2011 and February 28,2011,assuming there were no other transactions.

Piel Corporation (A U