Exercise 13-4 On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in...
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below.
| GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 |
||||
| Jan. 1 | Dec. 31 | |||
| Cash and Receivables | 19,600 | 54,000 | ||
| Net Property, Plant, and Equipment | 40,000 | 36,600 | ||
| Totals | 59,600 | 90,600 | ||
| Accounts and Notes Payable | 30,100 | 32,100 | ||
| Common Stock | 19,900 | 19,900 | ||
| Retained Earnings | 9,600 | 38,600 | ||
| Totals | 59,600 | 90,600 | ||
| GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 |
||
| Revenues | 74,300 | |
| Operating Expenses including Depreciation of 3,400 francs | 30,200 | |
| Net Income | 44,100 | |
| Dividends Declared and Paid | 15,100 | |
| Increase in Retained Earnings | 29,000 | |
Direct exchange rates for Swiss franc are:
| Dollars per Franc | ||
| January 1, 2014 | $0.5987 | |
| December 31, 2014 | 0.5321 | |
| Average for 2014 | 0.5654 | |
| Dividend declaration and payment date | 0.5810 |
(NEED HELP WITH PART B)
(b)
Prepare a schedule to verify the translation adjustment. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
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Adjustment for Changes in the Net Asset Position During the
YearCumulative Translation Adjustment (debit)Cumulative Translation
Adjustment (credit)DividendsExposed Net Asset Position - 1/1Exposed
Net Asset Position - 12/31Net Asset Position Translated Using Rate
in Effect at Date of TransactionsNet IncomeHomework Answers
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Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company,
purchased a controlling interest in...
Exercise 13-4 On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in...
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company,
purchased a controlling interest in Grant Management Consultants
located in Zurich, Switzerland. The acquisition was treated as a
purchase transaction. The 2014 financial statements stated in Swiss
francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
19,600
54,000
Net Property, Plant, and Equipment
40,000
36,600
Totals
59,600
90,600
Accounts and Notes Payable
30,100
32,100
Common...
Exercise 13-4 On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition wa...
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company,
purchased a controlling interest in Grant Management Consultants
located in Zurich, Switzerland. The acquisition was treated as a
purchase transaction. The 2014 financial statements stated in Swiss
francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
20,000
54,900
Net Property, Plant, and Equipment
40,700
36,400
Totals
60,700
91,300
Accounts and Notes Payable
30,400
32,200
Common...
On January 1, 2008, T Systems, a U.S.-based company, purchased a controlling interest in G Company...
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On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an in...
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows Debit SFr 8,500 22.000 6,900 26,000 109,000 Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock SFr 10,200 12,900 50,500 62,000 169,700 Sales Cost of Goods Sold 72,000 10,200 33,500 17,200 Depreciation...
Someone please help me answer this On January 1, 20X1. Popular Creek Corporation organized SunTime Company...
Someone please help me answer this
On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 69,000. SunTime's December 31, 20X1. trial balance in SFr is as follows: Credit Debit SFr 8, 200 22, See 6. 209 28,500 185, ees Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation...
Exercise 13-7 Dorsey Corporation purchased 90% of the common stock of Lansing Company on January 1,...
Exercise 13-7
Dorsey Corporation purchased 90% of the common stock of Lansing
Company on January 1, 2008. The cost of the investment was equal to
the book value interest acquired. Lansing Company operates two
retail stores and an exporting business in London that specializes
in buying and selling British tweeds. The subsidiary provided the
following financial statements in pounds to the parent company:
LANSING COMPANY
Consolidated Income and Retained Earnings Statement
for the Year Ended December 31, 2014
Sales
2,730,000...
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with...
On January 1, 20X1, Popular Creek Corporation organized SunTime
Company as a subsidiary in Switzerland with an initial investment
cost of Swiss francs (SFr) 75,000. SunTime’s December 31, 20X1,
trial balance in SFr is as follows:
Debit
Credit
Cash
SFr
8,800
Accounts Receivable (net)
23,500
Receivable from Popular Creek
5,300
Inventory
25,500
Plant & Equipment
110,000
Accumulated Depreciation
SFr
11,700
Accounts Payable
13,800
Bonds Payable
51,000
Common Stock
75,000
Sales
153,600
Cost of Goods Sold
71,000
Depreciation Expense
11,700
Operating...
Solo Co. Ltd. located in Mexico City is a wholly owned subsidiary of Partner Inc., a U.S. company. At the beginning of t...
Solo Co. Ltd. located in Mexico City is a wholly owned subsidiary of Partner Inc., a U.S. company. At the beginning of the year, Solo’s condensed balance sheet was reported in Mexican pesos (MXP) as follows: Assets 3,490,000 Liabilities 2,900,000 Stockholders’ Equity 590,000 During the year, the company earned income of MXP270,000 and on November 1 declared dividends of MXP125,000. The Mexican peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow: January 1...
Please help with the chart at least. On January 1, 20X1. Par Company purchased all the...
Please help with the chart at least.
On January 1, 20X1. Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $129,600. On he direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. South Bay's book value on January 1, 20X1. was C$81.000. The fair value of South Bay's plant and equipment was C$10.700 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage...
Crab Beach Systems, a U.S. multinational producer of computer hardware, has subsidiaries located throughout the world....
Crab Beach Systems, a U.S. multinational producer of computer hardware, has subsidiaries located throughout the world. The company recently received year-end financial statements from its Swiss subsidiary, Doghead Technology. Doghead was purchased by Crab Beach on January 1, 2014. Doghead’s financial statements are prepared and submitted to Crab Beach headquarters in Swiss francs. The accountant in charge of translating the financial statements has been unable to locate last year’s translated financial statements. Instead, the only data available from last year...
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company,
purchased a controlling interest in Grant Management Consultants
located in Zurich, Switzerland. The acquisition was treated as a
purchase transaction. The 2014 financial statements stated in Swiss
francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
19,600
54,000
Net Property, Plant, and Equipment
40,000
36,600
Totals
59,600
90,600
Accounts and Notes Payable
30,100
32,100
Common...
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company,
purchased a controlling interest in Grant Management Consultants
located in Zurich, Switzerland. The acquisition was treated as a
purchase transaction. The 2014 financial statements stated in Swiss
francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
20,000
54,900
Net Property, Plant, and Equipment
40,700
36,400
Totals
60,700
91,300
Accounts and Notes Payable
30,400
32,200
Common...
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows Debit SFr 8,500 22.000 6,900 26,000 109,000 Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock SFr 10,200 12,900 50,500 62,000 169,700 Sales Cost of Goods Sold 72,000 10,200 33,500 17,200 Depreciation...
Someone please help me answer this
On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 69,000. SunTime's December 31, 20X1. trial balance in SFr is as follows: Credit Debit SFr 8, 200 22, See 6. 209 28,500 185, ees Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation...
Exercise 13-7
Dorsey Corporation purchased 90% of the common stock of Lansing
Company on January 1, 2008. The cost of the investment was equal to
the book value interest acquired. Lansing Company operates two
retail stores and an exporting business in London that specializes
in buying and selling British tweeds. The subsidiary provided the
following financial statements in pounds to the parent company:
LANSING COMPANY
Consolidated Income and Retained Earnings Statement
for the Year Ended December 31, 2014
Sales
2,730,000...
On January 1, 20X1, Popular Creek Corporation organized SunTime
Company as a subsidiary in Switzerland with an initial investment
cost of Swiss francs (SFr) 75,000. SunTime’s December 31, 20X1,
trial balance in SFr is as follows:
Debit
Credit
Cash
SFr
8,800
Accounts Receivable (net)
23,500
Receivable from Popular Creek
5,300
Inventory
25,500
Plant & Equipment
110,000
Accumulated Depreciation
SFr
11,700
Accounts Payable
13,800
Bonds Payable
51,000
Common Stock
75,000
Sales
153,600
Cost of Goods Sold
71,000
Depreciation Expense
11,700
Operating...
Please help with the chart at least.
On January 1, 20X1. Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $129,600. On he direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. South Bay's book value on January 1, 20X1. was C$81.000. The fair value of South Bay's plant and equipment was C$10.700 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage...
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