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following account balances are for the Agee Company as of January 1. 2020, and Decem ominated in kroner (Kr). January 1, 202e (9,000) 34,0e0 (25,000) Ecounts payable ccounts receivable cumulated depreciation-buildings ccunulated depreciation-equipnent ands payable due 2023 Decenber 31, 2020 (19,000) 84,000 (30,000) (5, 500) (55,000) 95,000 8, 500 (78,000) (55,000) 114,000 40,000 (64,000) ash onmon stock epreciation expense 20,000

following account balances are for the Agee Company as of January 1. 2020, and Decem ominated in kroner (Kr). January 1, 202e (9,000) 34,0e0 (25,000) Ecounts payable ccounts receivable cumulated depreciation-buildings ccunulated depreciation-equipnent ands payable due 2023 Decenber 31, 2020 (19,000) 84,000 (30,000) (5, 500) (55,000) 95,000 8, 500 (78,000) (55,000) 114,000 40,000 (64,000) ash onmon stock epreciation expense 20,000

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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Problem 10-34 (Algo)
Problem 10-34 (Algo) (LO 10-3, 10-4) The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). January 1, 20eze (9,000) 34,0ee (25,00e) Accounts payable Accounts receivable Accunulated depreciation-buildings Accumulated depreciation-equipnent Bonds payable due 2823 Buildings Cash Conmon stock Depreciation expense Dividends (10/1/20) Equipment Gain an sale of building Rent expense Retained carnings Salary expense Sales Utilities expense Decenber 31, 282e (19, 000) 84,eee (30, eee) (5, 5ee) (55,000) 95,000 8, see (78, 000) 20,000 37,000 35, e00 (6, see) 17,ee0 (35,eee) 25,000 (100, eee) 7,500 (55,000) 114,00e 40,0ee (64,0ee) (35,000) Additional Information • Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013. • Agee purchased buildings in 2014 and sold one building with a book value of Kr 9,500 on July 1 of the current year. • Equipment was acquired on April 1, 2020. Relevant exchange rates for 1 Kr were as follows: 2013 $ 2.65 2014 2.45 January 1, z0ze April 1, 2828e July 1, 2020 October 1, 282e Decenber 31, 2020 Average for 2020 2.75 2.85 3.05 3.15 3.25 2.95 a. Assuming the U.S. doller is the functional currency, what is the remessurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained eamings of $75,950, which included a remessurement loss of $12,450. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $92,500 and a cumulative transletion adjustment of $10.150 (credit balance). (For all requirements, Input all answers as positive.) Remeasurement gain a. b. Translation adjustment positive
Transcribed Image Text:Problem 10-34 (Algo) (LO 10-3, 10-4) The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). January 1, 20eze (9,000) 34,0ee (25,00e) Accounts payable Accounts receivable Accunulated depreciation-buildings Accumulated depreciation-equipnent Bonds payable due 2823 Buildings Cash Conmon stock Depreciation expense Dividends (10/1/20) Equipment Gain an sale of building Rent expense Retained carnings Salary expense Sales Utilities expense Decenber 31, 282e (19, 000) 84,eee (30, eee) (5, 5ee) (55,000) 95,000 8, see (78, 000) 20,000 37,000 35, e00 (6, see) 17,ee0 (35,eee) 25,000 (100, eee) 7,500 (55,000) 114,00e 40,0ee (64,0ee) (35,000) Additional Information • Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013. • Agee purchased buildings in 2014 and sold one building with a book value of Kr 9,500 on July 1 of the current year. • Equipment was acquired on April 1, 2020. Relevant exchange rates for 1 Kr were as follows: 2013 $ 2.65 2014 2.45 January 1, z0ze April 1, 2828e July 1, 2020 October 1, 282e Decenber 31, 2020 Average for 2020 2.75 2.85 3.05 3.15 3.25 2.95 a. Assuming the U.S. doller is the functional currency, what is the remessurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained eamings of $75,950, which included a remessurement loss of $12,450. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $92,500 and a cumulative transletion adjustment of $10.150 (credit balance). (For all requirements, Input all answers as positive.) Remeasurement gain a. b. Translation adjustment positive
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