U.S. Industries has a subsidiary in Switzerland. The subsidiary’s financial statements are mainta...
U.S. Industries has a subsidiary in Switzerland. The subsidiary’s financial statements are maintained in Swiss francs (CHF). Exchange rates ($/CHF) for selected dates are as follows:
| January 1, 2018 | $1.02 | November 30, 2020 | $1.08 | |
| January 1, 2019 | 1.04 | December 31, 2020 | 1.09 | |
| Average for 2020 | 1.06 |
The following items appear in the subsidiary’s trial balance at December 31, 2020:
1. Cash in bank, CHF4,000,000.
2. Inventory, CHF3,000,000. The inventory was acquired on November 30, 2020.
3. Machinery and equipment, CHF11,000,000. A review of the records indicates that the company bought equipment costing CHF5,000,000 in January 2018 (20 percent of this was sold in January 2020) and additional equipment costing CHF7,000,000 in January 2019. Ignore accumulated depreciation.
4. Depreciation expense on machinery and equipment, CHF1,100,000 (depreciated over ten years, straight-line basis).
Required
Calculate the dollar amount for each of the above items, assuming the functional currency of the Swiss subsidiary is
(a) the U.S. dollar and
(b) the Swiss franc.
Enter answers using all zeros (do not abbreviate to millions or thousands).
| (a) | (b) | ||
|---|---|---|---|
| Cash | $Answer | $Answer | |
| Inventory | $Answer | $Answer | |
| Machinery and equipment | $Answer | $Answer | |
| Depreciation expense | $Answer | $Answer |
Homework Answers
Add Answer to:
U.S. Industries has a subsidiary in Switzerland. The subsidiary’s financial statements are mainta...
Translation and Remeasurement of Account Balances U.S. Industries has a subsidiary in Switzerland. The subsidiary’s financial...
Translation and Remeasurement of Account Balances U.S. Industries has a subsidiary in Switzerland. The subsidiary’s financial statements are maintained in Swiss francs (CHF). Exchange rates ($/CHF) for selected dates are as follows: January 1, 2018 $1.02 November 30, 2020 $1.08 January 1, 2019 1.04 December 31, 2020 1.09 Average for 2020 1.06 The following items appear in the subsidiary’s trial balance at December 31, 2020: 1. Cash in bank, CHF4,000,000. 2. Inventory, CHF3,000,000. The inventory was acquired on November 30,...
Assume that our company owns a subsidiary operating in Switzerland. The subsidiary has adopted the Swiss...
Assume that our company owns a subsidiary operating in Switzerland. The subsidiary has adopted the Swiss Franc (CHF) as its functional currency. Our company operates this subsidiary like a division or branch office, making all of its operating decisions, including pricing its products. We conclude, therefore, that the functional currency of this subsidiary is the $US and that its financial statements must be remeasured prior to consolidation. Following are the subsidiary’s financial statements (in CHF) for the most recent year:...
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) 65.000. RoadTime's December 31, 20x1. trial balance in SFr is as follows Debit SFr 8.300 22,500 5.400 28.000 102,000 Credit Cash Accounts Recelvable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid SFr 10.900 13.900 51.500 65.000...
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) 78,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows: Debit Credit Cash SFr 7,800 Accounts Receivable (net) 23,000 Receivable from Popular Creek 5,700 Inventory 28,500 Plant & Equipment 104,000 Accumulated Depreciation SFr 10,900 Accounts Payable 12,700 Bonds Payable 51,500 Common Stock 78,000 Sales 145,200 Cost of Goods Sold 71,500 Depreciation Expense 10,900 Operating...
On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.021 million...
On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.021 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2020, the book and fair values of the subsidiary’s assets and liabilities were as follows: Cash CHF 821,000 Inventory 1,321,000 Property, plant, and equipment 4,021,000 Notes payable (2,142,000 ) Stephanie prepares consolidated financial statements on December 31, 2020....
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...
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...
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an init...
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...
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...
Translation of financial statements A U.S.-based MNC has a subsidiary in France (local currency, euro, €)....
Translation of financial statements A U.S.-based MNC has a subsidiary in France (local currency, euro, €). The balance sheet and income statement of the subsidiary follow: : On December 31, 2019, the exchange rate is US$1.17/€. Assume that the local (euro) figures for the statements remain the same on December 31, 2020. Calculate the U.S. dollar-translated figures for the two ending time periods, assuming that between December 31, 2019 and December 31, 2020, the euro has appreciated against the U.S....
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 65.000. RoadTime's December 31, 20x1. trial balance in SFr is as follows Debit SFr 8.300 22,500 5.400 28.000 102,000 Credit Cash Accounts Recelvable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid SFr 10.900 13.900 51.500 65.000...
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...
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...
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...
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...
Translation of financial statements A U.S.-based MNC has a subsidiary in France (local currency, euro, €). The balance sheet and income statement of the subsidiary follow: : On December 31, 2019, the exchange rate is US$1.17/€. Assume that the local (euro) figures for the statements remain the same on December 31, 2020. Calculate the U.S. dollar-translated figures for the two ending time periods, assuming that between December 31, 2019 and December 31, 2020, the euro has appreciated against the U.S....
Most questions answered within 3 hours.
-
On a recent quiz, the class mean was 75 with a standard
deviation of 2.2. Calculate...
asked 6 minutes ago -
Discuss the Coefficient of Restitution in an elastic collision
compared to the Coefficient of Restitution in...
asked 10 minutes ago -
Pretend that you are
the audit manager on an annual financial statement audit engagement
for a...
asked 19 minutes ago -
A certain lens focuses light from an object 1.65 m away as an
image 41.8 cm...
asked 19 minutes ago -
Which metal has a resistivity that is within the range or
closest to 4.2X10^-6 to 4.7X10^-6...
asked 24 minutes ago -
5.) Suppose a researcher collected data on the mean height of
tomato plants grown in organic...
asked 37 minutes ago -
(b) A medical statistician wants to estimate the average weight
loss of people who are on...
asked 42 minutes ago -
In scala,
Can you explain what is the difference between them, and why the
first one...
asked 42 minutes ago -
True (T) or False (F) Questions
In a queuing system, if the system’s utilization is 100%,...
asked 51 minutes ago -
What is the total energy transported per hour along a narrow
cylindrical laser beam 1.60 mm...
asked 1 hour ago -
Key Assessment PAT 6: Sayles Chapter 14 Application Exercise
2
Beginning January 1, Community Hospital had...
asked 1 hour ago -
Let's assume the following data represents the time from when a
patient is discharged from North...
asked 1 hour ago