Anna Corporation is a domestic company in the Philippines. It owns Veronica Company, a 100% subsidiary in Singapore that began operation in 20X1. The subsidiary conducts operations in the company-owned building. This building, which cost 60 million Singaporean dollars (S$), was financed primarily by Singaporean banks. The parent invested 20 million S$ in the Singapore operation. All revenues and cash expenses are received and paid in S$. The subsidiary also maintains its books and records in S$. The subsidiary's financial statements are presented below: Veronica Company Statement of Financial Position December 31, 20X1 (In thousands of S$) Cash and Cash Equivalents Accounts Receivable $5,000 5,000 Land Building Accumulated Depreciation Total Assets $6,000 Accounts Payable 7,000 Unearned Rent 25,000 Mortgage Payable 50,000 Common Stock (4,000) Additional Paid-In Capital $84,000 Retained Earnings 40,000 10,000 16,000 8,000 $84,000 Total Liabilities and Equity Veronica Company Combined Statement of Comprehensive Income and Retained Earnings For the Year Ended December 31, 20X1 (In thousands of S$) Revenues Operating Expenses Comprehensive Income Retained Earnings, January 1 Dividends Paid $28,000 18,000 $10,000 (2,000) $8,000 Retained Earnings, December 31 Assumed rates for 20X1 are as follows: S$1 = P2.50 at the beginning of 20X1 (when the common stock was issued and the land and building were financed through the mortgage); • $$1 = P3.00 weighted average for 20x1; S$1 = P2.25 at the date the dividends were declared and the unearned rent was received; and • $$1 = P2.95 closing rate.
Anna Corporation is a domestic company in the Philippines. It owns Veronica Company, a 100% subsidiary in Singapore that began operation in 20X1. The subsidiary conducts operations in the company-owned building. This building, which cost 60 million Singaporean dollars (S$), was financed primarily by Singaporean banks. The parent invested 20 million S$ in the Singapore operation. All revenues and cash expenses are received and paid in S$. The subsidiary also maintains its books and records in S$. The subsidiary's financial statements are presented below: Veronica Company Statement of Financial Position December 31, 20X1 (In thousands of S$) Cash and Cash Equivalents Accounts Receivable $5,000 5,000 Land Building Accumulated Depreciation Total Assets $6,000 Accounts Payable 7,000 Unearned Rent 25,000 Mortgage Payable 50,000 Common Stock (4,000) Additional Paid-In Capital $84,000 Retained Earnings 40,000 10,000 16,000 8,000 $84,000 Total Liabilities and Equity Veronica Company Combined Statement of Comprehensive Income and Retained Earnings For the Year Ended December 31, 20X1 (In thousands of S$) Revenues Operating Expenses Comprehensive Income Retained Earnings, January 1 Dividends Paid $28,000 18,000 $10,000 (2,000) $8,000 Retained Earnings, December 31 Assumed rates for 20X1 are as follows: S$1 = P2.50 at the beginning of 20X1 (when the common stock was issued and the land and building were financed through the mortgage); • $$1 = P3.00 weighted average for 20x1; S$1 = P2.25 at the date the dividends were declared and the unearned rent was received; and • $$1 = P2.95 closing rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Translate the financial statements of Veronica Company into Philippine pesos.
Transcribed Image Text:Anna Corporation is a domestic company in the Philippines. It owns Veronica Company, a 100% subsidiary in
Singapore that began operation in 20x1. The subsidiary conducts operations in the company-owned building.
This building, which cost 60 million Singaporean dollars (s$), was financed primarily by Singaporean banks.
The parent invested 20 million S$ in the Singapore operation. All revenues and cash expenses are received
and paid in S$. The subsidiary also maintains its books and records in S$.
The subsidiary's financial statements are presented below:
Veronica Company
Statement of Financial Position
December 31, 20XX1
(In thousands of S$)
Cash and Cash Equivalents
Accounts Receivable
$6,000 Accounts Payable
7,000 Unearned Rent
25,000 Mortgage Payable
50,000 Common Stock
(4,000) Additional Paid-In Capital
$84,000 Retained Earnings
$5,000
5,000
40,000
10,000
16,000
8,000
$84,000
Land
Building
Accumulated Depreciation
Total Assets
Total Liabilities and Equity
Veronica Company
Combined Statement of Comprehensive Income and Retained Earnings
For the Year Ended December 31, 20x1
(In thousands of S$)
Revenues
Operating Expenses
Comprehensive Income
Retained Earnings, January 1
Dividends Paid
$28,000
18,000
$10,000
(2,000)
$8,000
Retained Earnings, December 31
Assumed rates for 20X1 are as follows:
S$1 = P2.50 at the beginning of 20X1 (when the common stock was issued and the land and building were
financed through the mortgage);
S$1 = P3.00 weighted average for 20X1;
S$1 = P2.25 at the date the dividends were declared and the unearned rent was received; and
S$1 = P2.95 closing rate.
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