Case 1. The following data are taken from the records of Elite Imports Company, a foreign subsidiary in New Zealand. NZ dollar Total Assets 12/31/20 146,000 Total Liabilities 45,000 Common Stock 12/31/20 60,000 Retained Earnings 01/01/20 29,000 Net Income 2020 15,000 Dividends Declared 12/31/20 3,000 Exchange rates: Closing/Current rate P 10 Historical rate P11 Weighted Average Rate P12 The peso balance of retained earnings on December 31, 2019 is P325,000.
Case 1. The following data are taken from the records of Elite Imports Company, a foreign subsidiary in New Zealand. NZ dollar Total Assets 12/31/20 146,000 Total Liabilities 45,000 Common Stock 12/31/20 60,000 Retained Earnings 01/01/20 29,000 Net Income 2020 15,000 Dividends Declared 12/31/20 3,000 Exchange rates: Closing/Current rate P 10 Historical rate P11 Weighted Average Rate P12 The peso balance of retained earnings on December 31, 2019 is P325,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Case 1. The following data are taken from the records of Elite Imports Company, a foreign subsidiary in New Zealand.
NZ dollar
| Total Assets 12/31/20 | 146,000 |
| Total Liabilities | 45,000 |
| Common Stock 12/31/20 | 60,000 |
| 29,000 | |
| Net Income 2020 | 15,000 |
| Dividends Declared 12/31/20 | 3,000 |
Exchange rates:
Closing/Current rate P 10
Historical rate P11
Weighted Average Rate P12
The peso balance of retained earnings on December 31, 2019 is P325,000.
1. Compute the Cumulative Translation Adjustment reported in the Consolidated
Group of answer choices
a. 25,000 debit
b. 122,000 debit
c. 116,000 credit
d. 125,000 credit
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