Company PriceBest established a wholly-owned Company Sugar on 1 January 2019. Sugar has a functional currency in USD but PriceBest requires Sugar to use SGD as its presentation currency. Company Sugar Statement of Financial Position As at 31 December 2019   USD Property 20,000  Cash 130,000  Inventory 200,000  Accounts receivable  100,000    450,000      Share capital  150,000  Retained earnings  270,000  Accounts payable  30,000    450,000      USD/SGD spot rates  1 January 2019 1.24  31 December 2019 1.36  Average for the year of 2019  1.30    Required: Translate Sugar’s statement of financial position as at 31 December 2019 from USD to SGD using the closing rate method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company PriceBest established a wholly-owned Company Sugar on 1 January 2019. Sugar has a functional currency in USD but PriceBest requires Sugar to use SGD as its presentation currency.

Company Sugar Statement of Financial Position As at 31 December 2019

 

USD

Property

20,000 

Cash

130,000 

Inventory

200,000 

Accounts receivable 

100,000 

 

450,000 

   

Share capital 

150,000 

Retained earnings 

270,000 

Accounts payable 

30,000 

 

450,000 

 

 

USD/SGD spot rates 

1 January 2019

1.24 

31 December 2019

1.36 

Average for the year of 2019 

1.30 

 

Required: Translate Sugar’s statement of financial position as at 31 December 2019 from USD to SGD using the closing rate method.

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