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PVC Corp started business January 2016, when common stock was issued for $250,000. In the first two months of operations, PVC had the following transactions January 15, 2016 Bought inventory for 100,000 Mexican pesos on account January 26, 2016 Sold 70% of inventory acquired on 1/15/16 for 44,000 Saudi riyals on account January 27, 2016 Paid $1,000 in other operating expenses February 2, 2016 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S. company February 15, 2016 Acquired and paid the 100,000 pesos owed to the Mexican supplier February 21, 2016 Paid $1,500 in other operating expenses February 28, 2016 Collected the 44,000 riyals from the Saudi customer and immediately converted them into U.S. dollars The following exchange rates apply: Date January 15 January 26 January 31 February 15 $.14 1 February 28 $.15 1 peso $27 - 1 riyal Rate Rate $.11-1 peso 5.20 $.12 1 peso $%24-1 riyal $.13-1 peso $25-1 riyal 1 riyal peso $.26 1 riyalComplete the summary income statement and balance sheet for the month ended January 31, 2016 and February 28, 2016, assuming there were no other transactions. January 31 February 28 INCOME STATEMENT Sales COGS Gross Margin Other Operating Expenses Exchange Gain/ Loss) Net Income ALANCE SHEET Cash Accounts Receivable Inventory Total Assets Accounts Payable Common Stock Retained Earnings Total Liabilities and Equity

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PVC Corp Income Statement Particulars Sales Cost of goods sold Gross Margin Other Operating Expenses Exchange Gain/(Loss) Net Income January 31, 2016 February 28, 2016 3,000 1,000 2,000 1,500 120 380 10,560 $ 7,700 $ 2,860 $ 1,000 $ 1,560 $ 300 $PVC Corp Balance Sheet Particulars Cash Accounts Receivable Inventory Total Assets January 31, 2016 February 28, 2016 248,380 249,000 $ 11,000 $ 3,300 $ 263,300$ 2,300 250,680 Account Payable Common Stock Retained Earnings Total Liabilities and Equity 13,000 $ 250,000 $ 300 263,300$ 250,000 680 250,680

Exchange Gain/(Loss) on Account Payable Date 15-01-2016 31-01-2016 Particulars Account Payable Closing balance Account Payable Exchange Gain/(Loss) on 31/01/2016 Peso Exchange Rate 100,000 $.11 1 Peso$ 11,000.00 100,000 $.13 1 Peso$ 13,000.00 $ -2,000.00 01-02-2016 15-02-2016 Opening Balance Account Payable Account Payable Paid Exchange Gain/(Loss) on 28/02/2016 100,000 $.13 1 Peso$ 13,000.00 100,000 $.14 1 Peso$ 14,000.00 $ -1,000.00 Exchange Gain/(Loss) on Account Receivable Date 26-01-2016 31-01-2016 Riyal Particulars Account Receivable Closing balance Account Receivable$ Exchange Gain/(Loss) on 31/01/2016 Exchange Rate 44,000 $.24 1 riyal 44,000 $.25 1 riyal $10,560.00 $ 11,000.00 $440.00 01-02-2016 28-02-2016 Opening Balance Account Receivable$ Account Payable Paid Exchange Gain/(Loss) on 28/02/2016 44,000 $.25 1 riyal 44,000 $.27 1 riyal $11,000.00 $ 11,880.00 $880.00

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