Answer:
Income statement | ||||
LCU | Exchange Rate | US dollars | ||
Rent revenue(8950*12) | 1,07,400 | 2.44 | 2,62,056 | |
Less: Expenses | ||||
Interest expenses(235000*5%) | 11,750 | 2.44 | 28,670 | |
Repair expenses | 4,300 | 2.45 | 10,535 | |
Depreciation expenses(333000/10) | 33,300 | 2.44 | 81,252 | |
Total expenses | 49,350 | 1,20,457 | ||
Net income | 58,050 | 1,41,599 | ||
Statement of retained earnings | ||||
LCU | Exchange Rate | US dollars | ||
Balance as on Jan 1. | 0 | 0 | 0 | |
Add: Net income | 58,050 | 1,41,599 | ||
58,050 | 1,41,599 | |||
Less: Dividend paid | 11,525 | 2.48 | 28,582 | |
Balance as on Dec 31. | 46,525 | 1,13,017 | ||
Balance sheet | ||||
LCU | Exchange Rate | US dollars | ||
Cash (Note:1) | 73,675 | 2.48 | 1,82,714 | |
Accounts receivable | 17,900 | 2.48 | 44,392 | |
Building | 3,33,000 | 2.48 | 8,25,840 | |
Accumulated depreciation | -33,300 | 2.48 | -82,584 | |
Total assets | 3,91,275 | 9,70,362 | ||
Interest payable | 11,750 | 2.48 | 29,140 | |
Note payable | 2,35,000 | 2.48 | 5,82,800 | |
Common stock | 98,000 | 2.40 | 2,35,200 | |
Retained earnings | 46,525 | 1,13,017 | ||
Translation adjustment (Balancing figure) | - | 10,205 | ||
Total liabilities | 3,91,275 | 9,70,362 | ||
Note.1 | ||||
Cash =89500-4300-11525=73675 |
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 74,000 pounds. The subsidiary immediately borrowed 175,000 pounds on a five-year note with 5 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 249,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
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Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 96,000 pounds. The subsidiary immediately borrowed 230,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 326,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
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Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-ine method. Also on January 1, 2017, the subsidiary rented...
do the whole statement of cash flow Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 72,000 pounds. The subsidiary immediately borrowed 148,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 220,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method....