Student Name:
Class:
a. Translation of Subsidiary Trial Balance
Debits Credits
Correct! -» 12,960$
Correct! -» 14,580
Correct! -» 4,860
972$ «- Correct!
Correct! -» 8,100
4,860 «– Correct!
8,100 «– Correct!
17,100 «– Correct!
Correct! -» 6,640
41,000 «– Correct!
Correct! -» 8,200
Correct! -» 984
Correct! -» 14,760
Correct! -» 71,084
Correct! -» 948
Correct! -» 72,032$ 72,032$ «- Correct!
Exchange
KQ Rate Dollar
– –$ «- Correct!
10,000 1.71 17,100 «– Correct!
25,000 1.64 41,000 «– Correct!
(4,000) 1.66 (6,640) «- Correct!
(5,000) 1.64 (8,200) «- Correct!
(600) 1.64 (984) «- Correct!
(9,000) 1.64 (14,760) «- Correct!
16,400 27,516$ «- Correct!
16,400 1.62 26,568 «– Correct!
948$ «- Correct!
Accumulated Depreciation
Sales
Totals
Translation adjustment
Miscellaneous Expenses
Depreciation Expense
Salary Expense
exchange rate
Net assets, 12/31 at current
Net assets, 12/31
Miscellaneous expense
Increase in net assets:
Net assets, 1/1
Depreciation expense
Salary expense
Dividends
Decrease in net assets:
Sales
Common stock issued
Translation adjustment
Problem 10-32
McGraw-Hill
Instructor
Calculation of Translation Adjustment
Equipment
Accounts Receivable
Cash
Dividends
Common Stock
Notes Payable
Accounts Payable
Land
Student Name:
Class:
Problem 10-32
McGraw-Hill
Instructor
Debits Credits
Correct! -» 12,960$
Correct! -» 14,580
Correct! -» 5,130
1,026$ «- Correct!
Correct! -» 7,950
4,860 «– Correct!
8,100 «– Correct!
17,100 «– Correct!
Correct! -» 6,640
41,000 «– Correct!
Correct! -» 8,200
Correct! -» 1,026
Correct! -» 14,760
Correct! -» 71,246
Correct!-» 840
Correct! -» 72,086$ 72,086$ «- Correct!
Exchange
KQ Rate Dollar
– – «- Correct!
10,000 1.71 17,100$ «- Correct!
25,000 1.64 41,000 «– Correct!
(3,000) 1.71 (5,130) «- Correct!
(5,000) 1.59 (7,950) «- Correct!
(4,000) 1.66 (6,640) «- Correct!
(5,000) 1.64 (8,200) «- Correct!
(9,000) 1.64 (14,760) «- Correct!
9,000 15,420$ «- Correct!
9,000 1.62 14,580 «– Correct!
840$ «- Correct!
Totals
Remeasurement loss
Miscellaneous Expenses
Depreciation Expense
Salary Expense
Sales
Common stock issued
Net monetary assets, 1/1
Common Stock
Increase in net monetary assets:
Dividends
Sales
Remeasurement loss
at current exchange rate
Net monetary assets, 12/31
Net monetary assets, 12/31
Miscellaneous expense
Salary expense
Dividends
Acquired land
Acquired equipment
Decrease in net monetary assets:
b. Remeasurement of Kingston Subsidiary Trial Balance
Calculation of Remeasurement Loss
Cash
Notes Payable
Accounts Payable
Land
Accumulated Depreciation
Equipment
Accounts Receivable
10,000KQ
3,000KQ
1.71$
1.59$
1.66$
1.64$
1.62$
Debits Credits
8,000KQ
9,000
3,000
600KQ
5,000
3,000
5,000
10,000
4,000
25,000
5,000
600
9,000
43,600KQ 43,600KQ
Equipment
Totals
Miscellaneous expenses
Depreciation expense
Salary expense
Sales
Dividends paid (6/1/17)
Common stock
Notes payable (due 2025)
Accounts payable
Land
Accumulated depreciation
Currency exchange (KQ 1):
Expended to acquire equipment
Kingsfield investment in subsidiary (in Kumquats)
Given P10-32:
Accounts receivable
Cash
Subsidiary trial balance, December 31, 2017
December 31, 2017
Weighted average – 2017
June 1, 2017
April 1, 2017
January 1, 2017
Student Name:
Class:
Exchange U.S.
Goghs Rate Code Dollars
270,000 1.59 A 429,300
(155,000) 1.59 A (246,450)
115,000 182,850
(54,000) 1.59 A (85,860)
10,000 1.72 H 17,200
71,000 114,190 «- Correct!
Exchange U.S.
Goghs Rate Dollars
216,000 396,520
71,000 114,190
(26,000) 1.61 H (41,860)
261,000 468,850 «- Correct!
Exchange U.S.
Goghs Rate Dollars
Cash
Assets
116,000 1.54 C 178,640
58,000 1.54 C 89,320
339,000 1.54 C 522,060
557,000 857,780 «- Correct!
176,000 1.54 C 271,040
120,000 2.08 H 249,600
261,000 468,850
557,000 857,780 «- Correct!
Total liabilities and equities
Translation adjustment
Exchange U.S.
Goghs Rate Dollars
336,000 1.67 BOY 561,120
71,000 114,190
(26,000) (41,860)
381,000 633,450 «- Correct!
381,000 1.54 C 586,740
46,710
85,000
131,710 «- Correct!
Dividends
Net income
Fixed assets (net)
Inventory
Net assets at current exchange rate
Net assets, 1/1
Translation Adjustment
Retained earnings, 12/31
Less: Dividends
Net income
Retained earnings, 1/1
December 31, 2017
Balance Sheet
Problem 10-33
McGraw-Hill
Instructor
Gross profit
For Year Ending December 31, 2017
Income Statement
LIVINGSTON COMPANY
Cost of goods sold
Sales
For Year Ending December 31, 2017
Statement of Retained Earnings
Net income
Gain on sale of equipment
Less: Operating expenses
Code: A = Average; C = Current; H = Historical; BOY = beginning of year
Receivables
Retained earnings, 12/31
Common stock
Liabilities
Liabilities and Equities
Total assets
GH 270,000
(155,000)
115,000
(54,000)
10,000
GH 71,000
GH 216,000
GH 176,000
January 1, 2017
April 1, 2017
September 1, 2017
Exchange rate for GH when common stock issued
Exchange rate for GH when property, plant and equipment acquired
Retained earnings translated as of Jan. 1, 2017
Inventory acquired evenly throughout the year
Total liabilities and equities
Liabilities
Total assets
Property, plant and equipment (net)
Inventory
Cash
Receivables
Retained earnings, 12/31/17
Common stock
Less: Dividends
Net income
Retained earnings, 1/1/17
Retained earnings, 12/31/17
For Year Ending December 31, 2017
Dividends declared Apr. 1, 2017
Equipment sold Sept. 1, 2017
Currency exchange (GH1):
Sales
Livingston Company is a wholly owned subsidiary of Rose Corporation
For Year Ending December 31, 2017
Income Statement
Statement of Retained Earnings
Gain on sale of equipment
Less: Operating expenses
Given P10-33:
Gross profit
Cost of goods sold
Net income
1.59$
Weighted average rate for 2017
Student Name:
Class:
Debit Exchange Debit Credit
(Ps) Rate (C$) (C$)
49,000 0.35 17,150 «- Correct!
19,000 0.25 4,750 «- Correct!
40,000 0.25 10,000 «- Correct!
59,000 0.35 20,650 «- Correct!
2,000 0.25 500 «- Correct!
23,000 0.30 6,900 «- Correct!
28,000 0.34 9,520 «- Correct!
28,000 0.34 9,520 «- Correct!
68,000 0.34 23,120 «- Correct!
21,000 0.35 7,350 «- Correct!
9,000 0.34 3,060 «- Correct!
124,000 0.34 42,160 «- Correct!
30,000 Given 7,530 «- Correct!
Fm. Sch. One 10 «- Correct!
81,110 81,110
Correct! Correct!
Salary expense
Net monetary liabilities, 1/1/17
Purchases
Decreases in net monetary assets:
Increases in net monetary assets-Sales
31,000 10,860 «- Correct!
31,000 0.35 10,850 «- Correct!
10 «- Correct!
89,090 59,740.30
Utility expense
Salary expense
Depreciation expense
Cost of goods sold
Sales
Gross profit
Net income
Remeasurement loss
Gain on sale of equipment
Accounts payable
current exchange rate
Net monetary assets, 12/31/17 at
Net monetary assets, 12/31/17
Inventory (ending-income statement)
Inventory (beginning-income statement)
Depreciation expense
Sales
Salary expense
Receivables
Purchases
Inventory (ending-balance sheet)
Main office
Cash
Buildings and equipment
Accumulated depreciation
Remeasurement loss
Remeasurement loss
Problem 10-35
McGraw-Hill
Instructor
a. Remeasurement of Mexican Operations
b. and c. Financial Statements for Subsidiary (C$)
Total
Student Name:
Class:
Problem 10-35
McGraw-Hill
Instructor
Part b. Exchange Part c.
$C Rate $U.S.
135,530 given 70,421.00
89,090 above 59,740.30
(28,000) 0.69 (19,320.00)
196,620 110,841.30
Correct! Correct!
Part b. Exchange Part c.
$C Rate $U.S.
46,650 0.65 30,322.50
75,350 0.65 48,977.50
107,520 0.65 69,888.00
177,000 0.65 115,050.00
(31,750) 0.65 (20,637.50)
374,770 243,600.50
374,770 243,600.50
$C Rate $U.S.
246,620 170,291.30 «- Correct!
Net assets, 1/1/17
(positive)
Cumulative translation adjustment, 12/31/17
(positive)
Cumulative translation adjustment, 1/1/17
Translation adjustment, 2017 (negative)
Net assets, 12/31/17
Dividends
Net income
Changes in net assets
Total
Total
Cumulative translation adjustment
Retained earnings
Common stock
Notes payable
Accounts payable
Accumulated depreciation
Buildings and equipment
Inventory
Receivables
Cash
Retained earnings, 12/31/17
Dividends
Net income
Retained earnings, 1/1/17
For the Year Ended December 31, 2017
Statement of Retained Earnings
December 31, 2017
Balance Sheet
Debit Credit
(C$) (C$)
35,000
27,000
167,000
26,000
50,000
203,000
8,000
28,000
5,000
98,000
76,000
68,000
135,530
26,000
312,000
9,000
7,530
640,530 640,530
Debit Credit
49,000
250,000 250,000
Depreciation expense
Cash
Main office
Sales
Salary expense
Receivables
Accounts payable
Purchases
Inventory (ending-balance sheet)
Buildings and equipment
Accumulated depreciation
Inventory (ending-income statement)
Inventory (beginning-income statement)
Depreciation expense
SENDELBACH CORPORATION
Ledgers for subsidiary as of December 31, 2017
Main Operation – Canada
Branch Operation – Mexico
Totals
Branch operation
Utility expense
Sales
Dividends, 4/1/17
Salary expense
Receivables
Notes payable – due in 2020
Inventory
Gain on sale of equipment, 6/1/17
Given P10-35:
Cost of goods sold
Common stock
Cash
Buildings and equipment
Accumulated depreciation
Accounts payable
Retained earnings, 1/1/17
SENDELBACH CORPORATION
Given P10-35:
7,530
C$ Ps
0.30 1
0.32 1
0.34 1
0.35 1
36,950
135,530
70,421$
US$ C$
0.70 1
0.69 1
0.68 1
0.67 1
0.65 1
December 31, 2017
Weighted-average for 2017
June 1, 2017
April 1, 2017
January 1, 2017
Exchange rates for translation purposes:
Translated figure
Canadian dollar
Subsidiary retained earnings at Dec. 31, 2016
exchange was $.45=C$1
Subsidiary’s common stock issued when
December 31, 2016 consolidated balance sheet
Additional information:
Mexican building and equipment acquired
Cumulative translation adjustment (credit) on
December 31, 2017
Weighted average rate for 2017
January 1, 2017
Weighted average, 2016
Currency exchange rates for Mexican operation:
balance on 12/31/17 (C$)
Mexican main office account (equity account)
when one peso was worth C$.25
Student Name:
Class:
Exchange
Pounds Rate Dollars
(800,000) 0.274 (219,200)
420,000 0.274 115,080
74,000 0.274 20,276
36,000 0.274 9,864
59,000 0.274 16,166
(241,000) (66,004)
Correct! Correct!
(133,000) From Sch. One (38,244)
(241,000) Above (66,004)
50,000 0.275 13,750
(324,000) (90,498)
Correct! Correct!
146,000 0.270 39,420
Total
Property, plant and equipment
Prepaid expense (adjusted)
Inventory
Additional paid-in capital
Common stock
Notes payable
Accounts payable
(324,000) Above (90,498)
(259,878)
From Sch. Two 14,718
(908,000) (245,160)
Correct! Correct!
Gain on sale of building, 10/1/17
Total
Cumulative translation adjustment (negative)
Subtotal
Net income
Cash and receivables
Retained earnings, 12/31/17
Problem 10-36
McGraw-Hill
Instructor
Step One – Translation Worksheet
Account
Other expenses
Rent expense (adjusted)
Salary expense
Cost of goods sold
Sales
Retained earnings, 12/31/17
Dividends
Net income
Retained earnings, 1/1/17
Student Name:
Class:
Problem 10-36
McGraw-Hill
Instructor
Exchange
Pounds Rate Dollars
– –
(163,000) 0.288 (46,944)
30,000 0.290 8,700
(133,000) (38,244)
Correct! Correct!
Exchange
Pounds Rate Dollars
(390,000) 0.300 (117,000)
(163,000) 0.288 (46,944)
30,000 0.290 8,700
(523,000) (155,244)
(523,000) 0.280 (146,440)
(8,804)
(523,000) 0.280 (146,440)
(241,000) Above (66,004)
Net assets, 12/31/17
Dividends, 6/1/17
Cumulative translation adjustment, 12/31/17 (negative)
Translation adjustment, 2017 (negative)
current exchange rate
Net assets, 12/31/17 at
Net income, 2017
Net assets, 1/1/17
Schedule Two-Cumulative Translation Adjustment at 12/31/17
Retained earnings, 1/1/17
Dividends, 6/1/16
Net income, 2016
Retained earnings, 1/1/16
Dividends, 6/1/16
Net income, 2016
Net assets, 1/1/16
(negative)
Translation adjustment, 2016
Schedule One-Translation of 1/1/17 Retained Earnings
current exchange rate
Net assets, 12/31/16 at
Net assets, 12/31/16
Student Name:
Class:
Problem 10-36
McGraw-Hill
Instructor
Cayce Simbel Consolidated
Dollars Dollars Debit Credit Balances
(200,000) (219,200) (419,200) Correct!
93,800 115,080 208,880 Correct!
19,000 20,276 39,276 Correct!
7,000 9,864 16,864 Correct!
21,000 16,166 37,166 Correct!
(13,750) – [ I ] 13,750 – Correct!
– (8,190) (8,190) Correct!
(72,950) (66,004) (125,204) Correct!
110,750 39,420 150,170 Correct!
98,000 80,190 178,190 Correct!
30,000 2,700 32,700 Correct!
126,000 – [*C] 38,244 [S] (164,244) – Correct!
398,000 122,850 [S] 9,000 [E] (900) 528,950 Correct!
762,750 245,160 890,010 Correct!
Retained earnings, 12/31/17
Additional paid-in capital
Common stock
Notes payable
Accounts payable
(259,878) (905,628) Correct!
14,718 [E] 900 15,618 Correct!
(762,750) (245,160) 217,138 217,138 (890,010) Correct!
Correct! Correct! Correct! Correct!
Net income
Retained earnings, 1/1/17
Retained earnings, 12/31/17
Dividends
For Year Ending December 31, 2017
Consolidation Worksheet
CAYCE CORPORATION AND SIMBEL COMPANY
Fixed assets
Investment
Adjustments and Eliminations
Total
Cumulative translation adjustment
Subtotal
Sales
Accounts
Net income
Cash and receivables
Salary expense
Cost of goods sold
Prepaid rent
Inventory
Gain, 10/1/17
Dividend income
Other expenses
Rent expense
Total