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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

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