On 8/26/2025 5:56 PM, Norm Samuelson wrote:
I deposited $60,000 into the CAD account.
The debit account was the CAD bank account --- what was the credit
account? It was in what denomination? (if not CAD an exchange rate
involved as of that date
I transferred $20,000 CAD to the USD account, with an exchange rate of
1CAD to .75USD. resulting in $15,000 USD.
Later I transferred another $20,000 CAD to the USD account, with an
exchange rate of 1CAD to .74USD. resulting in $14,800 USD.
That left me with $20,000 CAD and $29,800 USD.
The Balance Sheet shows Unrealized Gains of $200 USD.
What was the date of the Balance Sheet and exchange rate then.
What currency is the Balance Sheet in?
I have to assume that the "Unrealized Gain" came because of the change
in the exchange rate. The first transfer gave me $200 more than the
second. So I gained money on the first transfer by doing it at a
better exchange rate??? (But I did not "realize" it???)
I wind up with Total Assets of $44,600 (the $29,800USD plus the
$20,000CAD which is now worth $14,000 at the new exchange rate).
Retained Earnings is $45,000 (the initial $60,000 at the early
exchange rate).
HUH? You haven't described any transaction involving income or
expense. Might I suggest you run an income statement, start date when
you made the initial deposit and end date the date of the Balance Sheet.
Unrealized Gains is $200
Total Equity is $45,200. I do NOT understand that, as I do not have
over $45,000 now, but under $45,000.
Well THAT agrees with "retained gains" + "unrealized gains" (you
probably didn't describe the initial deposit correctly)
Show us initial transaction when you deposited 60,000 CAD ---- if your
"real currency" is USD, I would expect a credit to equity in dollars
converted at the exchange rate as of that date.
Might I humbly suggest that trying to have more than one currency in a
set of books is beyond somebody new to double entry bookkeeping
Michael D Novack
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