Question

Check my work Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2017. The country's currency is the kumquat (KQ). TO start this business, Kingsfield invests 10,000 kumquats. Of this amount, it spends 3,000 kumquats immediately to acquire equipment. Later, on April 1, 2017, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. The U.S. dollar ($) exchange rates for the kumquat for 2017 follow. $ 1.71 January 1 April 1 June 1 Weighted average December 31 As of December 31, 2017, the subsidiary reports the following trial Cred Cash Debits KQ8,eee 9, 3.ee Accounts receivable Equipment Accumulated depreciation Land Accounts payable Notes payable (due 2025) 3. Bee

Answer 1

a)

	Debits	Credits
Cash	12,960.00
Accounts Receivable	14,580.00
Equipment	4,860.00
Accumulated Depreciation		972.00
Land	8,100.00
Accounts Payable		4,860.00
Notes Payable		8,100.00
Common Stock		17,100.00
Dividends Paid	6,640.00
Sales		41,000.00
Salary Expense	8,200.00
Depreciation Expense	984.00
Miscellaneous Expense	14,760.00
	71,084.00
Translation Adjustment	948.00
Total	72,032.00	72,032.00

b)

	Debits	Credits
Cash	12,960.00
Accounts Receivable	14,580.00
Equipment	5,130.00
Accumulated Depreciation		1,026.00
Land	7,950.00
Accounts Payable		4,860.00
Notes Payable		8,100.00
Common Stock		17,100.00
Dividends Paid	6,640.00
Sales		41,000.00
Salary Expense	8,200.00
Depreciation Expense	1,026.00
Miscellaneous Expense	14,760.00
	71,246.00
Translation Adjustment	840.00
Total	72,086.00	72,086.00