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Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 The following U.S.S per kuna exchange rates are applicable: December 31, 2020 Average for 2020 $0.31 0.32 0.35 0.37 0.39 K 320,000 176,000 84,000 20,000 28,000 48,000 0.40 0.38 25, 200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements.

Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 The following U.S.S per kuna exchange rates are applicable: December 31, 2020 Average for 2020 $0.31 0.32 0.35 0.37 0.39 K 320,000 176,000 84,000 20,000 28,000 48,000 0.40 0.38 25, 200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements.

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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Nn.71.

Subject  :- Account 

a. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? b. b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? (For all requirements, round your answers to 2 decimal places.) Account Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation equipment Salary payable Depreciation expense. Sales Inventory Equipment Rent expense Dividends Notes receivable Exchange Rate Accumulated depreciation equipment Salary payable Depreciation expense
Transcribed Image Text:a. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? b. b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? (For all requirements, round your answers to 2 decimal places.) Account Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation equipment Salary payable Depreciation expense. Sales Inventory Equipment Rent expense Dividends Notes receivable Exchange Rate Accumulated depreciation equipment Salary payable Depreciation expense
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense The following U.S.S per kuna exchange rates are applicable: January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $0.31 0.32 0.35 K 320,000 176,000 84,000 20,000 28,000 48,000 25, 200 7,400 8,400 0.37 0.39 0.40 Lancer is preparing account balances to produce consolidated financial statements.
Transcribed Image Text:Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense The following U.S.S per kuna exchange rates are applicable: January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $0.31 0.32 0.35 K 320,000 176,000 84,000 20,000 28,000 48,000 25, 200 7,400 8,400 0.37 0.39 0.40 Lancer is preparing account balances to produce consolidated financial statements.
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