S11-6 (Learning Objective 2: Account for foreign-currency gains and losses) Boat Belting sells goods for 900,000 Mexican pesos. The foreign-exchange rate for a peso is $0.094 on the date of sale. Boat Belting then collects cash on April 24 when the exchange rate for a peso is $0.099. Record Boat’s cash collection.
Boat Belting buys inventory for 21,000 Swiss francs. A Swiss franc costs $1.12 on the purchase date. Record Boat Belting’s payment of cash on October 25, when the exchange rate for a Swiss Franc is $1.14.
In these two scenarios, which currencies strengthened? Which currencies weakened?