Piel Corporation (A U

question 11

Essay

Piel Corporation (a U.S.company)began operations on January 1,2011,when common stock was issued for $250,000.In the first two months of operations,Piel had the following transactions:
January 15,2011 Bought inventory for 100,000 Mexican pesos on account
January 26,2011 Sold 70% of inventory acquired on 1/15/11 for 44,000 Saudi riyals on account
January 27,2011 Paid $1,000 in other operating expenses
February 2,2011 Sold additional inventory that cost $1,000 for $3,000 cash to a U.S.company.
February 15,2011 Acquired and paid the 100,000 pesos owed to the Mexican supplier
February 21,2011 Paid $1,500 in other operating expenses
February 28,2011 Collected the 44,000 riyals from the Saudi customer 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 31,2011 and February 28,2011,assuming there were no other transactions.

Understand the process and significance of bank reconciliation in financial accounting.

Recognize the role and methods of internal controls over cash transactions.

Identify the components and objectives of an internal control system.

Distinguish between proper and weak internal control practices in managing cash.

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Definitions:

Transplanted Tissues

Tissues moved from one body and placed into another, either in the same person or between individuals, to replace damaged or defective tissues.

Plasma Proteins

Proteins present in blood plasma, serving various functions such as clotting, defense against pathogens, and transportation of substances.

Lymphocyte Activation

The process by which lymphocytes (a type of white blood cell) are stimulated to respond to pathogens or other antigens.

Antigen-presenting Cells

Specialized immune cells that capture antigens and present them on their surface to T-cells, initiating an immune response.