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CC Corporation owns a subsidiary in Japan whose financial statements are in Japanese Yen. Dec. 31, 2015 Dec. 31, 2014 ASSETS Cash and cash equivalents Receivables Inventory Property, plant and equipment, net TOTAL ASSETS 30,000 122,500 160,000 255,000 567,500 25,000 147,500 170,000 230,000 572,500 LIABILITIES AND EQUITY Accounts payable Long – term debt Common stock Retained earnings TOTAL LIABILITIES AND EQUITY 55,000 322,500 115,000 75,000 567,500 75,000 285,000 115,000 97,5000 ¥ 572,500 Relevant exchange rates were as follows: January 1, 2014 December 31, 2014 December 31, 2015 Average 2014 September 12, 2014 ¥ 1 = P 45 ¥ 1 = P 42.50 ¥ 1 = P 47.50 ¥1 = 43.75 ¥1 = P 40 CC formed the subsidiary on January 1, 2014. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth ¥ 15,000 on September 12, 2014 and none were declared during 2015. 19. How much is the cumulative translation adjustment in 2015? а. Р 625,000 b. Р 568,750 с. Р 1,006,250 d. P 875,000

CC Corporation owns a subsidiary in Japan whose financial statements are in Japanese Yen. Dec. 31, 2015 Dec. 31, 2014 ASSETS Cash and cash equivalents Receivables Inventory Property, plant and equipment, net TOTAL ASSETS 30,000 122,500 160,000 255,000 567,500 25,000 147,500 170,000 230,000 572,500 LIABILITIES AND EQUITY Accounts payable Long – term debt Common stock Retained earnings TOTAL LIABILITIES AND EQUITY 55,000 322,500 115,000 75,000 567,500 75,000 285,000 115,000 97,5000 ¥ 572,500 Relevant exchange rates were as follows: January 1, 2014 December 31, 2014 December 31, 2015 Average 2014 September 12, 2014 ¥ 1 = P 45 ¥ 1 = P 42.50 ¥ 1 = P 47.50 ¥1 = 43.75 ¥1 = P 40 CC formed the subsidiary on January 1, 2014. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth ¥ 15,000 on September 12, 2014 and none were declared during 2015. 19. How much is the cumulative translation adjustment in 2015? а. Р 625,000 b. Р 568,750 с. Р 1,006,250 d. P 875,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CC Corporation owns a subsidiary in Japan whose financial statements are in Japanese Yen. Dec. 31, 2015 Dec. 31, 2014 ASSETS Cash and cash equivalents Receivables Inventory Property, plant and equipment, net TOTAL ASSETS 30,000 122,500 160,000 255,000 567,500 25,000 147,500 170,000 230,000 572,500 LIABILITIES AND EQUITY Accounts payable Long – term debt Common stock Retained earnings TOTAL LIABILITIES AND EQUITY 55,000 322,500 115,000 75,000 567,500 75,000 285,000 115,000 97,5000 ¥ 572,500 Relevant exchange rates were as follows: January 1, 2014 December 31, 2014 December 31, 2015 Average 2014 September 12, 2014 ¥ 1 = P 45 ¥ 1 = P 42.50 ¥ 1 = P 47.50 ¥1 = 43.75 ¥1 = P 40 CC formed the subsidiary on January 1, 2014. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth ¥ 15,000 on September 12, 2014 and none were declared during 2015. 19. How much is the cumulative translation adjustment in 2015? а. Р 625,000 b. Р 568,750 с. Р 1,006,250 d. P 875,000
Transcribed Image Text:CC Corporation owns a subsidiary in Japan whose financial statements are in Japanese Yen. Dec. 31, 2015 Dec. 31, 2014 ASSETS Cash and cash equivalents Receivables Inventory Property, plant and equipment, net TOTAL ASSETS 30,000 122,500 160,000 255,000 567,500 25,000 147,500 170,000 230,000 572,500 LIABILITIES AND EQUITY Accounts payable Long – term debt Common stock Retained earnings TOTAL LIABILITIES AND EQUITY 55,000 322,500 115,000 75,000 567,500 75,000 285,000 115,000 97,5000 ¥ 572,500 Relevant exchange rates were as follows: January 1, 2014 December 31, 2014 December 31, 2015 Average 2014 September 12, 2014 ¥ 1 = P 45 ¥ 1 = P 42.50 ¥ 1 = P 47.50 ¥1 = 43.75 ¥1 = P 40 CC formed the subsidiary on January 1, 2014. Income of the subsidiary was earned evenly throughout the years and the subsidiary declared dividends worth ¥ 15,000 on September 12, 2014 and none were declared during 2015. 19. How much is the cumulative translation adjustment in 2015? а. Р 625,000 b. Р 568,750 с. Р 1,006,250 d. P 875,000
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