A Philippine company a foreign subsidiary on January 1, 20x4. The subsidiary's trial balances for January 1 and December 31, 20x4 one presented below, in foreign currencies. January 1, 20x4 December 31, 20x4 balances Dr (Cr) balances Dr (Cr) Cash receivables FC 37,000 FC 20,000 Plant and equipment, net 400,000 435,000 Liabilities (172,000) (165,000) Capital Stock (115,000) (115,000) Retained Earnings, Jan 1 (150,000) (150,000) Dividends 10,000 Sales revenue (800,000) Operating expenses 765,000 Total FC -0- FC -0- New plant and equipment of FC85,000 was acquired in 20x4. Operating expenses include FC50,000 of depreciation on plant and equipment, of which FC5,000 is related to plant and equipment purchased in 20x4. Exchange rate (P/FC) are as follows: January 1, 20x4 1.45 Plant and equipment acquired 1.40 Average for 20x4 1.30 Dividends declared 1.26 December 31, 20x4 1.25 What is the translation gain or loss for 20x4?
A Philippine company a foreign subsidiary on January 1, 20x4. The subsidiary's trial balances for January 1 and December 31, 20x4 one presented below, in foreign currencies. January 1, 20x4 December 31, 20x4 balances Dr (Cr) balances Dr (Cr) Cash receivables FC 37,000 FC 20,000 Plant and equipment, net 400,000 435,000 Liabilities (172,000) (165,000) Capital Stock (115,000) (115,000) Retained Earnings, Jan 1 (150,000) (150,000) Dividends 10,000 Sales revenue (800,000) Operating expenses 765,000 Total FC -0- FC -0- New plant and equipment of FC85,000 was acquired in 20x4. Operating expenses include FC50,000 of depreciation on plant and equipment, of which FC5,000 is related to plant and equipment purchased in 20x4. Exchange rate (P/FC) are as follows: January 1, 20x4 1.45 Plant and equipment acquired 1.40 Average for 20x4 1.30 Dividends declared 1.26 December 31, 20x4 1.25 What is the translation gain or loss for 20x4?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:A Philippine company a foreign subsidiary on January 1, 20x4. The subsidiary's trial
balances for January 1 and December 31, 20x4 one presented below, in foreign currencies.
January 1, 20x4 December 31, 20x4
balances Dr (Cr) balances Dr (Cr)
Cash receivables FC 37,000 FC 20,000
Plant and equipment, net 400,000 435,000
Liabilities (172,000) (165,000)
Capital Stock (115,000) (115,000)
Retained Earnings, Jan 1 (150,000) (150,000)
Dividends 10,000
Sales revenue (800,000)
Operating expenses 765,000
Total FC -0- FC -0-
New plant and equipment of FC85,000 was acquired in 20x4. Operating expenses
include FC50,000 of depreciation on plant and equipment, of which FC5,000 is related
to plant and equipment purchased in 20x4.
Exchange rate (P/FC) are as follows:
January 1, 20x4 1.45
Plant and equipment acquired 1.40
Average for 20x4 1.30
Dividends declared 1.26
December 31, 20x4 1.25
What is the translation gain or loss for 20x4?
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