Asked by Harry Singh on Jul 22, 2024
Verified
Coyote Corp. (a U.S. company in Texas) 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 50,000 pesos on January 1, 2021, translated at 1 peso = $0.18. What amount will Coyote Corp. report in its 2021 balance sheet for Cash?
Balance Sheet
A financial statement that displays a company’s financial position at a certain date, listing assets, liabilities, and shareholder equity.
Exchange Rates
The price of one nation's currency expressed in the currency of another nation, used to convert from one currency to another for trade and finance.
Cash
This term refers to money in the form of currency that is used to conduct transactions, make purchases, or settle debts.
- Comprehend the impact that variations in foreign currency can have on the appraisal of transactions and the presentation of financial statements.
Verified Answer
TA
Tiffany AcreeJul 26, 2024
Final Answer :
Cash [(50,000 pesos × $0.18) + (48,000 pesos × $0.23) − (36,000 pesos × $0.24) ] = $11,400
Learning Objectives
- Comprehend the impact that variations in foreign currency can have on the appraisal of transactions and the presentation of financial statements.