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):CashInventoryLandBuildingAccumulated depreciation2020Feb.MayThe subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During2020, the following transactions took place:NGN 16,81012,1004,21042,100(21,050)NGN 54,17020112013Paid 8,210,000 NGN on the note payable.Sold entire inventory for 18,100,000 NGN on account.June 1 Sold land for 6,210,000 NGN cash.Aug. 1 Collected all accounts receivable.Sept. 1 Signed long-term note to receive 8,210,000 NGN cash.Oct. 1 Bought inventory for 20,210,000 NGN cash..Nov. 1 Bought land for 3,210,000 NGN on account.Dec. 1 Declared and paid 3,210,000 NGN cash dividend to parent.Dec.31 Recorded depreciation for the entire year of 2,105,000 NGN.The US dollar ($) exchange rates for 1 NGN are as follows:August 1, 2019December 31, 2019February 1, 2020May 1, 2020June 1, 2020August 1, 2020September 1, 2020October 1, 2020NGN 111 ..111 -1 W11Notes payableCommon stockRetained earnings$0.00690.00630.0083M0.00850.00070.00890.0091W 0.00950.00970.0099NGN 20,42022,50011,250***NGN 54,170Chec coups. cecm noce to AVE 8,410, U MUR Cas.Oct. 1 Bought inventory for 20,210,000 NGN cash.Nov. 1 Bought land for 3,210,000 NGN on account.Dec. 1 Declared and paid 3,210,000 NGN cash dividend to parent.Dec.31 Recorded depreciation for the entire year of 2,105,000 NGN.The U.S dollar ($) exchange rates for 1 NGN are as follows:20112013August 1, 2019December 31, 2019February 1, 2020May 1, 2020June 1, 2020August 1, 2020September 1, 2020October 1, 2020November 1, 2020December 1, 2020.December 31, 2020Average for 2020a. Positiveb.NGN 1Remeasurement gain11-1111111111M.$0.00690.00630.0083a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2020?b. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2020?(Input all amounts as positive. Enter amounts in whole dollars.)0.00850.00870.00890.00910.00950.00970.00990.01010.01030.01260.0116translation adjustment

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 16,810 12,100 4,210 42,100 (21,050) NGN 54,170 Notes payable Common stock Retained earnings NGN 20,420 22,500 11,250 NGN 54,170 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 16,810 12,100 4,210 42,100 (21,050) NGN 54,170 Notes payable Common stock Retained earnings NGN 20,420 22,500 11,250 NGN 54,170 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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H2.
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