Instructions:1. Calculate the re-measurement gain (loss) or translation adjustments.2. Translate the branch's income statement and retained earnings statement only.Answer A Lebanese Company has a branch in Egypt. The branch's financial statements in 31/12/2020(Egyptian pound-LE) were as follows:Income statementRevenuesCost of goods soldOther expenses (includingdepreciation 30,000)Net income.CashInventory (cost)Plant AssetsStatement of Financial PositionAPLong-term loanCapitalRetained earnings300,000(150.000)(50,000)100,000150.00050,000300,000500,000Additional information:1. The Branch acquired the plant assets in January 1, 2009 when the company wasestablished.2. On January 1, 2010, the company increased capital by LE 50,000 and purchased plantassets of LE 100,000. Plant assets have no salvage value and have the same useful life andthe company uses the straight-line depreciation.3. The branch declared and paid dividends of LE 75,000 at December 1, 2020.30,000170,000100,000200,000500,0004. Beginning inventory of January 1, 2020 was acquired during October-December 2019.5. The ending inventory was acquired on December 1, 2020.6. Cost of goods sold balance at December 31, 2020 of the branch in Lebanese lira was LL207,000,DateJanuary 1, 2009January 1, 2010October-December 2019January 1, 20197. The January 1, 2020 retained earnings balance of the branch in Lebanese lira was LL350,000.Rate1.321.361.341.308. The functional currency is the Lebanese lira (LL).9. The exchange rate for Egyptian pound against the Lebanese are:DateAverage for 2020December 1, 2020December 31, 2020Rate1.501.621.65

Exchange of Foreign Currency. When the companies operate companies in different Countries, So the…

Answered: Instructions: 1. Calculate the…

Instructions: 1. Calculate the re-measurement gain (loss) or translation adjustments. 2. Translate the branch's income statement and retained earnings statement only. Answer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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