Johnson Corporation (A U

Essay

Johnson Corporation (a U.S.company)began operations on December 1,2010,when the owner contributed $100,000 of his own money to establish the business.Johnson then had the following import and export transactions with unaffiliated Mexican companies:
December 12,2011 Bought inventory for 150,000 pesos on account.
Invoice denominated in pesos.
December 15,2011 Sold 60% of inventory acquired on 12/12/11 for 120,000 pesos on account.Invoice denominated in pesos.
January 1,2012 Acquired and paid the 150,000 pesos owed to the Mexican supplier
January 15,2012 Collected the 120,000 pesos from the Mexican customer and immediately converted them into U.S.dollars
The following exchange rates apply:
Required:
1.What were Sales in the income statement for the year ended December 31,2011?
2.What was the COGS associated with these sales?
3.What is the Accounts Payable balance in the balance sheet at December 31,2011?
4.What is the Inventory balance in the balance sheet at December 31,2011?