Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets P10M Total liabilities PSM Share capital Retained earnings Total liabilities and equity 2M 3M P10M Income P7M Expenses Profit (4M) P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5:X1 Average rate December 31, 20x1 (closing rate) PS:¥1 P10:¥1
Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets P10M Total liabilities PSM Share capital Retained earnings Total liabilities and equity 2M 3M P10M Income P7M Expenses Profit (4M) P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5:X1 Average rate December 31, 20x1 (closing rate) PS:¥1 P10:¥1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How much is the translated profit or loss?
Transcribed Image Text:Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of
P2M share capital, which were issued also on this date. Entity A's functional currency is the
Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese
yuan (¥). The following information was gathered on December 31, 20x1, after a year of
operations.
Total assets
PIOM
Total liabilities
P5M
Share capital
Retained earnings
Total liabilities and equity
2M
3M
PIOM
Income
P7M
(4M)
P3M
Expenses
Profit
Relevant exchange rates:
January 1, 20x1 (historical rate for the share capital) P5¥1
Average rate
December 31, 20x1 (closing rate)
PS:¥1
P10:¥1
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