Reference no: EM132609858
Question - The Fisher Corporation engaged in the following transactions during 2014. Fisher uses a perpetual inventory system:
Apr.1 Purchased merchandise from a Mexican supplier at a cost of 100,000 pesos. The exchange rate on this date was $ 0.15 per peso.
May 5 Paid for the merchandise. The exchange rate on this date was $ 0.16 per peso.
Jun 10 Sold goods to a buyer at a selling price of $ 80,000 U.S. dollars. The exchange rate on this date was $1.05 Canadian dollars for each dollar Ignore the journal entry to record cost of goods sold.
Jul 30 Received payment from the buyer for the goods sold on June 10.
The exchange rate on this date was $1.02 Canadian dollars for each U.S. dollar,
a) Prepare the journal entries necessary to record each of the above transactions.
b) During the periods of time covered by the transactions, was the Canadian dollar getting stronger or weaker relative the Mexican peso and the US dollar?