Answer:
b.Translation adjustment should be reported on Income statement.
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 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 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...
Someone please help me answer this On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 69,000. SunTime's December 31, 20X1. trial balance in SFr is as follows: Credit Debit SFr 8, 200 22, See 6. 209 28,500 185, ees Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation...
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) 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...
Solo Co. Ltd. located in Mexico City is a wholly owned subsidiary of Partner Inc., a U.S. company. At the beginning of the year, Solo’s condensed balance sheet was reported in Mexican pesos (MXP) as follows: Assets 3,490,000 Liabilities 2,900,000 Stockholders’ Equity 590,000 During the year, the company earned income of MXP270,000 and on November 1 declared dividends of MXP125,000. The Mexican peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow: January 1...
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...
Please help with the chart at least. On January 1, 20X1. Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $129,600. On he direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. South Bay's book value on January 1, 20X1. was C$81.000. The fair value of South Bay's plant and equipment was C$10.700 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage...
On January 1, 20X1, Par Company purchased all the outstanding stock of South Bay Company, located in Canada, for $105,300. On January 1, 20X1, the direct exchange rate for the Canadian dollar (C$) was C$1 = $0.81. South Bay’s book value on January 1, 20X1, was C$87,000. The fair value of South Bay’s plant and equipment was C$11,000 more than book value, and the plant and equipment are being depreciated over 10 years with no salvage value. The remainder of...
ullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 55,000 pounds. The subsidiary immediately borrowed 145,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 200,000 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...