Response to the following problem:
On May 8, 2011, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 800,000 pesos on February 10, 2012. Jett prepares quarterly financial statements on March 31, June 30, September 30, and December 31. The exchange rates for pesos during the time the receivable is outstanding follow.
May 8, 2011 . . . . . . . . . . . . . . . . $0.1984
June 30, 2011 . . . . . . . . . . . . . . . 0.2013
September 30, 2011 . . . . . . . . . 0.2029
December 31, 2011. . . . . . . . . . 0.1996
February 10, 2012 . . . . . . . . . . . 0.2047
Compute the foreign exchange gain or loss that Jett should report on each of its quarterly income statements for the last three quarters of 2011 and the first quarter of 2012. Also compute the amount reported on Jett's balance sheets at the end of each of its last three quarters of 2011.