Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). OnDecember 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s):CashInventoryLandBuildingAccumulateddepreciation20112013August 1, 2019December 31,2019February 1, 2020May 1, 2020June 1, 2020August 1, 2020September 1,2020NGN 16,790 Notes payableCommon stockRetained.11,900earningsThe subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stockin 2011. During 2020, the following transactions took place:October 1, 2020November 1, 2020December 1, 2020December 31,2020Average for 20204,19041,900(20,950)NGN 53,8302020Feb. 1 Paid 8,190,000 NGN on the note payable.May 1 Sold entire inventory for 17,900,000 NGN on account.June 1 Sold land for 6,190,000 NGN cash.Aug. 1 Collected all accounts receivable.Sept. 1 Signed long-term note to receive 8,190,000 NGN cash.Oct. 1 Bought inventory for 20,190,000 NGN cash..Nov. 1 Bought land for 3,190,000 NGN on account.Dec. 1 Declared and paid 3,190,000 NGN cash dividend to parent.Dec.31 Recorded depreciation for the entire year of 2,095,000 NGN.The US dollar ($) exchange rates for 1 NGN are as follows:ab.NGN= $0.0067NGN20,38022,30011,15011 =1NGN53,8300.00610.00811 =0.00831 =0.00851 = 0.008710.00891 =0.00931 =0.009511=0.00970.00990.01011 =1 = 0.01221 = 0.0112a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for2020?b. Assuming the U.S.S is the subsidiary's functional currency, what is the remeasurement gain or loss determined solelyfor 2020?(Input all amounts as positive. Enter amounts in whole dollars.)translationadjustment

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 16,790 11,900 4,190 41,900 (20,950) NGN 53,830 Notes payable Common stock Retained earnings NGN20, 380 22,300 11,150 NGN53,830 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:

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 16,790 11,900 4,190 41,900 (20,950) NGN 53,830 Notes payable Common stock Retained earnings NGN20, 380 22,300 11,150 NGN53,830 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:

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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A3
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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 NGN 16,000 Notes payable NGN 20,000 Inventory 10,000 Common stock 20,000 Land 4,000 Retained earnings 10,000 Building 40,000 Accumulated depreciation (20,000 ) NGN 50,000 NGN 50,000 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: 2020 Feb. 1 Paid 8,000,000 NGN on the note payable. May 1 Sold entire inventory for 16,000,000 NGN on account. June 1 Sold land for 6,000,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,000,000 NGN cash. Oct. 1 Bought inventory for 20,000,000 NGN cash. Nov. 1…
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