Question

as of Md ter for ate on from ope's nds of Thai bahts Liabilities and Net Wo Asse Bangkok Instruments, Ltd. Balance Sheet, March 1. the Assets Cast th the B24,000 B18,000 Cash Accounts payable Bank loans Acc 36,000 ucial 60,000 Accounts rece Inv. receivable Inventory 48,000 18,000 Common stock Retained earnings Ne and Net plant and equipment 72,000 eqy 60,000 B168,000 B168,000 Exchange rates -

Answer 1

Solution:

Translation with current method:

Assets	Thai Baht	Rate Before	USD	Rate After	USD
Cash	24,000	30	800	40	600
Accounts Receivable	36,000	30	1,200	40	900
Inventory	48,000	30	1,600	40	1,200
Net Plant and Equipment	60,000	30	2,000	40	1,500
Total	168,000		5,600		4,200
Liabilites and Equity (Net Worth)
Accounts Payable	18,000	30	600	40	450
Bank Loans	60,000	30	2,000	40	1,500
Common Stock	18,000	20	900	20	900
Retained Earnings	72,000	34	2,100	34	2,100
CTA Account profit (loss)					-750
Total	168,000		5,600		4,200

　

Translation with temporal method:

Assets	Thai Baht	Rate Before	USD	Rate After	USD
Cash	24,000	30	800	40	600
Accounts Receivable	36,000	30	1,200	40	900
Inventory	48,000	30	1,600	30	1,600
Net Plant and Equipment	60,000	20	3,000	20	3,000
Total	168,000		6,600		6,100
Liabilites and Equity (Net Worth)
Accounts Payable	18,000	30	600	40	450
Bank Loans	60,000	30	2,000	40	1,500
Common Stock	18,000	20	900	20	900
Retained Earnings	72,000	34	3,100	34	3,100
CTA Account or profit (loss)					150
Total	168,000		6,600		6,100