Asked by Zahra Topaz on Jul 04, 2024
Verified
Potter Corp. (a U.S. company in Colorado) had the following series of transactions in a foreign country during 2021: 
The appropriate exchange rates during 2021 were as follows: 
The beginning balance of cash was 250,000 Thai baht on January 1, 2021, converted at the spot rate of ฿1 = $0.041. What amount will Potter Corp. report in its 2021 balance sheet for Cash?
Balance Sheet
A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.
Thai Baht
The official currency of Thailand, coded as THB and symbolized as ฿.
Cash
The most liquid form of asset, representing currency or its equivalent that is accepted for the exchange of goods, repayment of debt or in meeting expenses.
- Ascertain the accurate representation of inventory and cash balances influenced by foreign currency conversion in the financial statements.
Verified Answer
NP
nitin patelJul 11, 2024
Final Answer :
Cash [(฿250,000 × $0.041) + (฿40,000 × $0.031) − (฿100,000 × $0.034) ] = $8,090
Learning Objectives
- Ascertain the accurate representation of inventory and cash balances influenced by foreign currency conversion in the financial statements.