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es Bentley Company owns a subsidiary in India whose balance sheets in rupees (R) for the last two years follow: December 31, December 31, Assets: Cash Receivables Inventory Fixed Assets, net Total Assets Equities: Current Payables Long-Term Debt Common Stock Retained Earnings Total Equities 20X6 20X7 R 119,000 455,000 684,000 1,013,000 R 94,000 553,000 739,000 917,000 R 2,271,000 R 2,303,000 275,000 1,269,000 506,000 221,000 R 2,271,000 344,000 1,139,000 506,000 314,000 R 2,303,000 Bentley formed the subsidiary on January 1, 20X6, when the exchange rate was 30 rupees for 1 U.S. dollar. The exch rate for 1US dollar on December 31 20X6 and December 31 20X7 had increased to 35 rupees and 40 rupees.

es Bentley Company owns a subsidiary in India whose balance sheets in rupees (R) for the last two years follow: December 31, December 31, Assets: Cash Receivables Inventory Fixed Assets, net Total Assets Equities: Current Payables Long-Term Debt Common Stock Retained Earnings Total Equities 20X6 20X7 R 119,000 455,000 684,000 1,013,000 R 94,000 553,000 739,000 917,000 R 2,271,000 R 2,303,000 275,000 1,269,000 506,000 221,000 R 2,271,000 344,000 1,139,000 506,000 314,000 R 2,303,000 Bentley formed the subsidiary on January 1, 20X6, when the exchange rate was 30 rupees for 1 U.S. dollar. The exch rate for 1US dollar on December 31 20X6 and December 31 20X7 had increased to 35 rupees and 40 rupees.

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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ces Bentley Company owns a subsidiary in India whose balance sheets in rupees (R) for the last two years follow: December 31, December 31, 20X6 20X7 Assets: Cash Receivables Inventory Fixed Assets, net Total Assets Equities: Current Payables Long-Term Debt Common Stock Retained Earnings Total Equities R 119,000 455,000 684,000 1,013,000 R 2,271,000 R 94,000 553,000 739,000 917,000 R 2,303,000 Check my work 275,000 344,000 1,269,000 1,139,000 506,000 506,000 221,000 314,000 R 2,271,000 R 2,303,000 Bentley formed the subsidiary on January 1, 20X6, when the exchange rate was 30 rupees for 1 U.S. dollar. The exchange rate for 1 U.S. dollar on December 31, 20X6, and December 31, 20X7, had increased to 35 rupees and 40 rupees, respectively. Income is earned evenly over the year, and the subsidiary declared no dividends during its first two years of existence. Required: a. Present both the direct and the indirect exchange rates for the rupees for the three dates of (1) January 1, 20X6; (2) December 31, 20X6; and (3) December 31, 20X7. b. Prepare the subsidiary's translated balance sheet as of December 31, 20X6, assuming the rupee is the subsidiary's functional currency. c. Prepare the subsidiary's translated balance sheet as of December 31, 20X7, assuming the rupee is the subsidiary's functional currency.
Transcribed Image Text:ces Bentley Company owns a subsidiary in India whose balance sheets in rupees (R) for the last two years follow: December 31, December 31, 20X6 20X7 Assets: Cash Receivables Inventory Fixed Assets, net Total Assets Equities: Current Payables Long-Term Debt Common Stock Retained Earnings Total Equities R 119,000 455,000 684,000 1,013,000 R 2,271,000 R 94,000 553,000 739,000 917,000 R 2,303,000 Check my work 275,000 344,000 1,269,000 1,139,000 506,000 506,000 221,000 314,000 R 2,271,000 R 2,303,000 Bentley formed the subsidiary on January 1, 20X6, when the exchange rate was 30 rupees for 1 U.S. dollar. The exchange rate for 1 U.S. dollar on December 31, 20X6, and December 31, 20X7, had increased to 35 rupees and 40 rupees, respectively. Income is earned evenly over the year, and the subsidiary declared no dividends during its first two years of existence. Required: a. Present both the direct and the indirect exchange rates for the rupees for the three dates of (1) January 1, 20X6; (2) December 31, 20X6; and (3) December 31, 20X7. b. Prepare the subsidiary's translated balance sheet as of December 31, 20X6, assuming the rupee is the subsidiary's functional currency. c. Prepare the subsidiary's translated balance sheet as of December 31, 20X7, assuming the rupee is the subsidiary's functional currency.
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