US bank balance does not match Canadian amount in Balance Sheet

Question

Hello everyone. I am stumped. I have taken over the books for a client and there is 90.88 in the US account which balances with the bank statement, however it shows -646.39 Canadian on the balance sheet. Can someone help guide me with the general journal entries to balance this issue? I am using June 30, 2020 as the correction date which has a conversion rate of 1.368. Thank you in advance. 
 DC

KTB · Accepted Answer

KTB · Answer

it is due to the exchange rates used. I do an journal entry with crazy FX rate to bring the balance back to what it should be. 
 EX; Dr US bank account $ .01 
 CR. FX account ( exchange rounding ) .01 
 And the exchange rate to use would be say 77071.00 
 The Home currency bank balance should read $124.32 
 check the report to see that the entry will correct the US balance and only impact the home currency by 0.01 
 
 then remove the crazy exchange rate so you do not use it again later by accident. 
 Hope this helps. 
 KTB

Sage 50 Canada

US bank balance does not match Canadian amount in Balance Sheet

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