Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash Inventory Land Building Accumulated depreciation NGN 15,450 10,500 2011 2013 August 1, 2019 December 31, 2019 February 1, 2020 May 1, 2020 May 1, June 1, 2020 August 1, 2020 September 1, 2020 October 1, 2020 November 1, 2020 December 1, 2020 December 31, 2020 Average for 2020 4,050 40,500 (20,250) NGN 50,250 NGN 1 2020 Feb. 1 Paid 8,050,000 NGN on the note payable. May 1 Sold entire inventory for 16,500,000 NGN on account. June 1 Sold land for 6,050,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,050,000 NGN cash. Oct. 1 Bought inventory for 20,050,000 NGN cash. Nov. 1 Bought land for 3,050,000 NGN on account. Dec. 1 Declared and paid 3,050,000 NGN cash dividend to parent. Dec.31 Recorded depreciation for the entire year of 2,025,000 NGN. The U.S dollar ($) exchange rates for 1 NGN are as follows: The subsidiary acquired the Inventory on August 1, 2019, and the land and building in 2013. It Issued the common stock in 2011. During 2020, the following transactions took place: 1 = 1 = 1 = 1 1 = = 1 - 1 = 1 = 1 1 1 1 1 - ▪ . $ 0.0053 0.0047 0.0067 0.0069 0.0071 0.007 0.0073 0.0075 0.0079 0.0081 0.000 0.0083 Notes payable Common stock Retained earnings 0.0085 0.0087 0.0094 0.0084 NGN 20,100 20,100 10,050 NGN 50,250
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash Inventory Land Building Accumulated depreciation NGN 15,450 10,500 2011 2013 August 1, 2019 December 31, 2019 February 1, 2020 May 1, 2020 May 1, June 1, 2020 August 1, 2020 September 1, 2020 October 1, 2020 November 1, 2020 December 1, 2020 December 31, 2020 Average for 2020 4,050 40,500 (20,250) NGN 50,250 NGN 1 2020 Feb. 1 Paid 8,050,000 NGN on the note payable. May 1 Sold entire inventory for 16,500,000 NGN on account. June 1 Sold land for 6,050,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,050,000 NGN cash. Oct. 1 Bought inventory for 20,050,000 NGN cash. Nov. 1 Bought land for 3,050,000 NGN on account. Dec. 1 Declared and paid 3,050,000 NGN cash dividend to parent. Dec.31 Recorded depreciation for the entire year of 2,025,000 NGN. The U.S dollar ($) exchange rates for 1 NGN are as follows: The subsidiary acquired the Inventory on August 1, 2019, and the land and building in 2013. It Issued the common stock in 2011. During 2020, the following transactions took place: 1 = 1 = 1 = 1 1 = = 1 - 1 = 1 = 1 1 1 1 1 - ▪ . $ 0.0053 0.0047 0.0067 0.0069 0.0071 0.007 0.0073 0.0075 0.0079 0.0081 0.000 0.0083 Notes payable Common stock Retained earnings 0.0085 0.0087 0.0094 0.0084 NGN 20,100 20,100 10,050 NGN 50,250
Chapter1: Financial Statements And Business Decisions
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