On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below.GRANT MANAGEMENT CONSULTANTSComparative Balance SheetsJanuary 1 and December 31, 2014 Jan. 1 Dec. 31Cash and Receivables 20,300 55,200Net Property, Plant, and Equipment 39,600 36,800 Totals 59,900 92,000Accounts and Notes Payable 30,200 31,500Common Stock 19,600 19,600Retained Earnings 10,100 40,900 Totals 59,900 92,000GRANT MANAGEMENT CONSULTANTSConsolidated Income and Retained Earnings Statementfor the Year Ended December 31, 2014Revenues 76,300Operating Expenses including Depreciation of 2,800 francs 30,400Net Income 45,900Dividends Declared and Paid 15,100Increase in Retained Earnings 30,800Direct exchange rates for Swiss franc are: Dollars per FrancJanuary 1, 2014 $0.5987December 31, 2014 0.5321Average for 2014 0.5654Dividend declaration and payment date 0.5810 (a) Your answer is correct. Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) SwissFrancs TranslationRate $Consolidated Income and Retained Earnings Statement $ Balance Sheet Total Total (b)Prepare a schedule to verify the translation adjustment. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) SwissFrancs TranslationRate $ $

The financial statements provide detailed financial information about the assets, obligations,…

Answered: ranslate the year-end balance sheet and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

(a)


	Your answer is correct.

Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

	Swiss Francs	Translation Rate	$
Consolidated Income and Retained Earnings Statement
		$






Balance Sheet


Total





Total

(b)

Prepare a schedule to verify the translation adjustment. (Round answers to 0 decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

Swiss Francs	Translation Rate	$
	$

Expert Solution

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Foreign Exchange Transactions

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions