Panda Corporation, a U.S. company, formed a British subsidiary on January 1, 2014 by investing 450,000 British pounds (£) in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Sky Corporation, purchased real property on April 1, 2014 at a cost of £500,000, with £100,000 allocated to land and £400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The British pound is Sky's functional currency and its reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2014 = 1£ = $1.60 April 01, 2014 = 1£ = $1.61 December 31, 2014 =1£= $1.68 2014 average rate= 1£ = $1.66 Sky's adjusted trial balance is presented below for the year ended December 31, 2014. In Pounds Debits: Cash £ 220,000 Accounts receivable 52,000 Inventory 59,000 Building 400,000 Land 100,000 Depreciation expense 7,500 Other expenses 110,000 Cost of goods sold 220,000 Total debits £ 1,168,500 Credits Accumulated depreciation £7,500 Accounts payable 111,000 Common stock 450,000 Retained earnings 0 Equity adjustment 0 Sales revenue 600,000 Total credits £1,168,500 Please, translated the income statement and translated balance sheet
Panda Corporation, a U.S. company, formed a British subsidiary on January 1, 2014 by investing 450,000 British pounds (£) in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Sky Corporation, purchased real property on April 1, 2014 at a cost of £500,000, with £100,000 allocated to land and £400,000 allocated to a building. The building is
January 01, 2014 = 1£ = $1.60
April 01, 2014 = 1£ = $1.61
December 31, 2014 =1£= $1.68
2014 average rate= 1£ = $1.66
Sky's adjusted
Debits:
Cash £ 220,000
Accounts receivable 52,000
Inventory 59,000
Building 400,000
Land 100,000
Depreciation expense 7,500
Other expenses 110,000
Cost of goods sold 220,000
Total debits £ 1,168,500
Credits
Accumulated depreciation £7,500
Accounts payable 111,000
Common stock 450,000
Retained earnings 0
Equity adjustment 0
Sales revenue 600,000
Total credits £1,168,500
Please, translated the income statement and translated
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