Gold Corporation began its operation at the beginning of 2018. Its functional currency is the US dollar and its presentation currency is the Philippine peso. Gold Corporation had cash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginning of February, Gold Corporation purchased land for $80,000 and building for $55,000 in exchange for a three-year note payable. Revenue for 2018 was $355,000. Operating expenses, including depreciation of $5,000, were $250,000. The statement of financial position for Gold Corporation in US dollar at the end of 2018 is as follows: Cash Accounts receivable Land Building, net Total assets Gold Company Balance Sheet December 31, 2018 Assets US Dollars 105,000 170,000 100,000 50,000 425.000 Accounts payable Liabilities and Shareholders' Equity Long-term debt Share capital Retained earnings Total liabilities and stockholders' equity 10,000 155,000 225,000 35,000 425,000 Additional land was purchased in March in exchange for a three-year note payable for $20,000. Dividends of $70,000 were declared and paid on October. The exchange rates for 2018 are as follows: Beginning of the year February March October End of the year Weighted average P46.50 46.25 46.75 45.75 45.50 46.00 REQUIRED: Translate (translation working paper) the financial statements of Gold Corporation into the presentation currency which is Philippine peso.
Gold Corporation began its operation at the beginning of 2018. Its functional currency is the US dollar and its presentation currency is the Philippine peso. Gold Corporation had cash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginning of February, Gold Corporation purchased land for $80,000 and building for $55,000 in exchange for a three-year note payable. Revenue for 2018 was $355,000. Operating expenses, including depreciation of $5,000, were $250,000. The statement of financial position for Gold Corporation in US dollar at the end of 2018 is as follows: Cash Accounts receivable Land Building, net Total assets Gold Company Balance Sheet December 31, 2018 Assets US Dollars 105,000 170,000 100,000 50,000 425.000 Accounts payable Liabilities and Shareholders' Equity Long-term debt Share capital Retained earnings Total liabilities and stockholders' equity 10,000 155,000 225,000 35,000 425,000 Additional land was purchased in March in exchange for a three-year note payable for $20,000. Dividends of $70,000 were declared and paid on October. The exchange rates for 2018 are as follows: Beginning of the year February March October End of the year Weighted average P46.50 46.25 46.75 45.75 45.50 46.00 REQUIRED: Translate (translation working paper) the financial statements of Gold Corporation into the presentation currency which is Philippine peso.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gold Corporation began its operation at the beginning of 2018. Its functional currency is
the US dollar and its presentation currency is the Philippine peso. Gold Corporation had
cash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginning
of February, Gold Corporation purchased land for $80,000 and building for $55,000 in
exchange for a three-year note payable. Revenue for 2018 was $355,000. Operating
expenses, including depreciation of $5,000, were $250,000. The statement of financial
position for Gold Corporation in US dollar at the end of 2018 is as follows:
Gold Company
Balance Sheet
December 31, 2018
Assets
US
Dollars
Cash
105,000
170,000
100,000
50,000
425.000
Accounts receivable
Land
Building, net
Total assets
Liabilities and Shareholders' Equity
Accounts payable
Long-term debt
Share capital
Retained earnings
Total liabilities and stockholders' equity
10,000
155,000
225,000
35.000
425.000
Additional land was purchased in March in exchange for a three-year note payable for
$20,000. Dividends of $70,000 were declared and paid on October. The exchange rates
for 2018 are as follows:
Beginning of the year
P46.50
February
March
46.25
46.75
45.75
October
End of the year
Weighted average
45.50
46.00
REQUIRED: Translate (translation working paper) the financial statements of Gold
Corporation into the presentation currency which is Philippine peso.
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