I have Canadian dollars as my home currency. I did a home currency adjustment (HCA) to bring the (Canadian) balance for my USD foreign bank account on the Balance Sheet into line with the ACTUAL balance in my USD foreign bank account, using the exchange rate on the date I did the HCA.
As a result, Quickbooks posted a HUGE amount of INCOME from foreign exchange to my P&L report.
Why would this happen since I already applied the appropriate exchange rate of every transaction at the time of the transaction, and reported the exchange gain or loss already?