Meric Corporation (a U.S. company) began operations on January 1, 2014, when the owner borrowed $150,000 to start the company. In the first month of operations, Meric had the following transactions:
January 3, 2014 Bought inventory for 100,000 Brazilian real on account. Must be paid with Brazilian real
January 8, 2014 Sold 60% of inventory acquired on 1/3/14 for 32,000 British pounds on account. Invoice denominated in British pounds
January 10, 2014 Paid $3,000 in other operating expenses
January 23, 2014 Acquired and paid half of the Brazilian real owed to the Brazilian supplier
January 28, 2014 Collected half of the 32,000 pounds from the customer in Great Britain 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, 2014 assuming there were no other transactions.

Question

Meric Corporation (a U.S. company) began operations on January 1, 2014, when the owner borrowed $150,000 to start the company. In the first month of operations, Meric had the following transactions:
January 3, 2014 Bought inventory for 100,000 Brazilian real on account. Must be paid with Brazilian real
January 8, 2014 Sold 60% of inventory acquired on 1/3/14 for 32,000 British pounds on account. Invoice denominated in British pounds
January 10, 2014 Paid $3,000 in other operating expenses
January 23, 2014 Acquired and paid half of the Brazilian real owed to the Brazilian supplier
January 28, 2014 Collected half of the 32,000 pounds from the customer in Great Britain 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, 2014 assuming there were no other transactions.

Quizplus · Accepted Answer

The Answer of Meric Corporation (a U.S. company) began operations on January 1, 2014, when the owner borrowed $150,000 to start the company. In the first month of operations, Meric had the following transactions:
January 3, 2014 Bought inventory for 100,000 Brazilian real on account. Must be paid with Brazilian real
January 8, 2014 Sold 60% of inventory acquired on 1/3/14 for 32,000 British pounds on account. Invoice denominated in British pounds
January 10, 2014 Paid $3,000 in other operating expenses
January 23, 2014 Acquired and paid half of the Brazilian real owed to the Brazilian supplier
January 28, 2014 Collected half of the 32,000 pounds from the customer in Great Britain 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, 2014 assuming there were no other transactions.

Meric Corporation (A U