in dollars rates in pesos

Cash $10,000 P55.00 P 550,000

Accounts receivable 20,000 55.00 1,100,000
Equipment 12,000 55.00 660,000
TOTAL ASSETS $42,000 P 2,310,000

Accounts payable $ 8,000 P55.00 P 440,000

Unearned rent 4,000 55.00 220,000
Capital stock 20,000 50.00 1,000,000
Retained earnings 10,000 495,500
Translation gain - (squeeze) 154,500
Total liabilities and equity $42,000 P2,310,000

Sales $ 10,000 P52.00 P 520,000

Cost of sales 4,000 52.00 208,000
Gross profit $ 6,000 P 312,000
Operating expenses 2,700 52.00 140,400
Depreciation expense 800 P52.00 P 41,600
Net profit $ 2,500 130,000

Retained earnings, beginning $ 8,000 (not applicable) P 392,000

Net Profit 2,500 130,000
Dividends (500) P53.00 (26,500)
Retained earnings, end. $10,000 P 495,500