All Balance sheet Items need to be translated at year end rate that is $.20.
All P&L items need to be translated with avg rate that is $.22.
Rate | |||||
Particular | Debit | Credit | Debit | Credit | |
Cash | 1,000.00 | 0.2 | 200.00 | ||
Inventory | 2,000.00 | 0.2 | 400.00 | ||
Property, Plant and Machinery | 6,000.00 | 0.2 | 1,200.00 | ||
Accumulated Depreciation | 600.00 | 0.2 | 120.00 | ||
Current Liabilities | 1,500.00 | 0.2 | 300.00 | ||
Long-term Debt | 3,000.00 | 0.2 | 600.00 | ||
Contributed Capital | 3,200.00 | 0.2 | 640.00 | ||
Retained earnings beginning | - | ||||
Sales | 5,000.00 | 0.22 | 1,100.00 | ||
Cost of goods sold | 3,000.00 | 0.22 | 660.00 | ||
Selling Expense | 400.00 | 0.22 | 88.00 | ||
Depreciation Expense | 600.00 | 0.22 | 132.00 | ||
Income tax expense | 300.00 | 0.22 | 66.00 | ||
Translation Adjustment | 14.00 | ||||
13,300.00 | 13,300.00 | 2,760.00 | 2,760.00 |
Buch Corporation established a subsidiary in Romania on January 1, 2017 by investing Leu 3,200,000 when...
ancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales KQ 170,000 Inventory (bought on 3/1/17) 85,000 Equipment (bought on 1/1/16) 54,000 Rent expense 12,000 Dividends (declared on 10/1/17) 20,000 Notes receivable (to be collected in 2020) 33,000 Accumulated depreciation—equipment 16,200 Salary payable 4,400 Depreciation expense 5,400 The following U.S.$ per KQ exchange rates...
E7.11 Translated and Remeasured Trial BalancesThe inode Company established a wholly-owned on January 1, 2019, when the exchange rate was $0.30/riyal (SAR). Of Thode's initial SAR200.000.000 investment, SAR100,000,000 was used to acquire plant assets (ten- vear life) and SAR50.000.000 was used to acquire inventory. The remaining amount was initially held as cash by the subsidiary. During 2019. the subsidiary reported net income of SAR20.000.000. Inventory purchases of SAR15.000.000 were made evenly during the year. It paid dividends of SAR10.000.000 on...
2/11/2020 Part III. (35 points) Doner Company Inc. established a foreign subsidiary on January 1, Year I Revenues and expenses occur evenly throughout the year. The exchange rates for Year 1 are as follows ($ per FC): January 1 $1.00 February 1, FC50,000 Equipment was purchased 0.95 Average 0.90 December 1, FC10,000 Dividend was declared. 0.85 December 31 0.80 Required: a. Assuming that FC is the subsidiary's functional currency, translate the subsidiary's financial statements to U.S. dollars. Year 1 Exchange...
Check my work Kingsfield establishes a subsidiary operation in a foreign country on January 1, 2017. The country's currency is the kumquat (KQ). TO start this business, Kingsfield invests 10,000 kumquats. Of this amount, it spends 3,000 kumquats immediately to acquire equipment. Later, on April 1, 2017, it also purchases land. All subsidiary operational activities occur at an even rate throughout the year. The U.S. dollar ($) exchange rates for the kumquat for 2017 follow. $ 1.71 January 1 April...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales KQ 190,000 Inventory (bought on 3/1/17) 95,000 Equipment (bought on 1/1/16) 58,000 Rent expense 12,000 Dividends (declared on 10/1/17) 22,000 Notes receivable (to be collected in 2020) 35,000 Accumulated depreciation—equipment 17,400 Salary payable 4,800 Depreciation expense 5,800 The following U.S.$ per KQ exchange rates...
On January 2, 2019, Maddox Corporation, headquartered in the U.S., established a wholly- owned subsidiary in Mexico City. An initial investment of P10,000,000 was made on that date; the exchange rate was $0.05/peso. During 2019, the following cash transactions occurred at the Mexico City subsidiary. All amounts are in pesos (P). Facilities Costs (01/02; 5 year life) (P) 1,000,000 Purchase of office equip (04/01; 10 year life) (P) 300,000 Sales (P) 12,000,000 Merchandise purchases (P) 9,000,000 Operating expenses (P) 3,000,000...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment Salary payable Depreciation expense KQ 300,000 165,000 80,000 20,000 28,000 46,000 24,000 7,000 8,000 The following U.S.$ per KQ exchange rates...
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment Salary payable Depreciation expense KQ 260,000 156,000 72,000 16,000 26,000 42,000 21,600 6,200 7,200 The following U.S.S per KQ exchange rates...
The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr). January 1, 2017 (16,000) 53,000 (44,000) (63,000) 133,000 59,000 (68,000) Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation equipment Bonds payable-due 2020 Buildings Cash Common stock Depreciation expense Dividends (10/1/17) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales Utilities expense December 31, 2017 (27,500) 103,000 (49,000) (7,400) (63,000) 104,500 10.400...
On January 1, 20X1, Popular Creek Corporation organized RoadTime
Company as a subsidiary in Switzerland with an initial investment
cost of Swiss francs (SFr) 60,000. RoadTime’s December 31, 20X1,
trial balance in SFr is as follows:
Debit
Credit
Cash
SFr
7,000
Accounts Receivable (net)
20,000
Receivable from Popular Creek
5,000
Inventory
25,000
Plant & Equipment
100,000
Accumulated Depreciation
SFr
10,000
Accounts Payable
12,000
Bonds Payable
50,000
Common Stock
60,000
Sales
150,000
Cost of Goods Sold
70,000
Depreciation Expense
10,000
Operating...
> How did you get the translation adjustment of 14.00 ?
Izzybrizzy Sat, Feb 5, 2022 12:33 AM