A US company, acquired an interest in Kamins Co, a foreign company in March 2017, when 1 FC equaled $1.52. Kamins is a foreign company whose functional currency is the FC. The condensed preclosing comparative trial balance for Kamins for the year ended December 31, 2019, is a follows: Debit (Credit)12/31/201912/31/2018Current assets150,000 FC215,000 FCLong Lived assets, net577,000470,000Other assets95,00075,000Current liabilities-112,000-100,000-125,000Other liabilities-180,000Common Stock-100,000-100,000Retained Earnings, BEC-355,00045,000-240,000Dividends declared35,000Sales-1,100,000-900,000Cost of sales735,000600,000Other expenses165,000150,000Dividends are declared on May 15th each year. The translated balance in retained earnings at the beginning of 2018 was $388,800.Determine the balance in the cumulative translation adjustment account as of December 31, 2019.Relevant exchange rates are as follows:End of yearBeg of year$1.68Average$1.7915-May2018$1.75$1.8920191.89$1.89$1.93$1.96

Step 1 Foreign currency translation is used to convert the results of foreign subsidiaries to its…

A US company, acquired an interest in Kamins Co, a foreign company in March 2017, when 1 FC equaled $1.52. Kamins is a foreign company whose functional currency is the FC. The condensed preclosing comparative trial balance for Kamins for the year ended December 31, 2019, is a follows:

A US company, acquired an interest in Kamins Co, a foreign company in March 2017, when 1 FC equaled $1.52. Kamins is a foreign company whose functional currency is the FC. The condensed preclosing comparative trial balance for Kamins for the year ended December 31, 2019, is a follows:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Question

Debit (Credit)
12/31/2019
12/31/2018
Current assets
150,000 FC
215,000 FC
Long Lived assets, net
577,000
470,000
Other assets
95,000
75,000
Current liabilities
-112,000
-100,000
-125,000
Other liabilities
-180,000
Common Stock
-100,000
-100,000
Retained Earnings, BEC
-355,000
45,000
-240,000
Dividends declared
35,000
Sales
-1,100,000
-900,000
Cost of sales
735,000
600,000
Other expenses
165,000
150,000
Dividends are declared on May 15th each year. The translated balance in retained earnings at the beginning of 2018 was $388,800.
Determine the balance in the cumulative translation adjustment account as of December 31, 2019.
Relevant exchange rates are as follows:
End of year
Beg of year
$1.68
Average
$1.79
15-May
2018
$1.75
$1.89
2019
1.89
$1.89
$1.93
$1.96

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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