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 |
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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 |
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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).)
Swiss Francs |
Translation Rate |
$ | ||||
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 Income |
$ | |||||
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 Income |
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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 Income |
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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 Income |
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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 Income |
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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 Income |
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Adjustment for Changes in the Net Asset Position During the YearCumulative Translation Adjustment (credit)Cumulative Translation Adjustment (debit)DividendsExposed Net Asset Position - 1/1Exposed Net Asset Position - 12/31Net Asset Position Translated Using Rate in Effect at Date of TransactionsNet Income |
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 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...
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