A U.S. company executed a series of transactions in Mexico during 2007. The appropriate exchange rates during 2007 were as follows:

March 1	Bought inventory costing 60,000 pesos on credit.
May 1	Sold 60 percent of the inventory for 54,000 pesos on credit.
August 1	Collected 48,000 pesos from customers.
September 1	Paid 36,000 pesos to creditors.

The appropriate exchange rates during 2007 were as follows:

Exchange
Date	Rate
March 1, 2007	$0.20 = 1 peso
May 1, 2007	$0.22 = 1 peso
August 1, 2007	$0.23 = 1 peso
September 1, 2007	$0.24 = 1 peso
December 1, 2007	$0.25 = 1 peso

Prepare all journal entries in U.S. dollars along with any December 31, 2007, adjusting entries. For each journal entry, recognize each transaction appropriately as either a sale or purchase, with a corresponding asset and liability exposure, respectively. Include supporting calculations for the amount of each transaction after each account title.

Submit your answers in the template provided. Click here to download the template.

Journal Entries Dat e Item Debit Credit Page 1 of 1 MBA6302_Advanced Financial Accounting 2008 South University