Translation of financial statements Use the following information for the next three questions: Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets PIOM Total liabilities P5M Share capital Retained earnings Total liabilities and equity 2M 3M P10M Income P7M Expenses Profit (4M) P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5:¥1 Average rate December 31, 20x1 (closing rate) P8:¥1 P10:¥1 How much is the translated equity?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Translation of financial statements
Use the following information for the next three questions:
Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of
P2M share capital, which were issued also on this date. Entity A's functional currency is the
Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese
yuan (¥). The following information was gathered on December 31, 20x1, after a year of
operations.
Total assets
PIOM
Total liabilities
P5M
Share capital
Retained earnings
Total liabilities and equity
2M
3M
P10M
Income
P7M
Expenses
(4M)
Profit
P3M
Relevant exchange rates:
January 1, 20x1 (historical rate for the share capital) P5¥1
Average rate
December 31, 20x1 (closing rate)
P8:¥1
P10:¥1
How much is the translated equity?
Transcribed Image Text:Translation of financial statements Use the following information for the next three questions: Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets PIOM Total liabilities P5M Share capital Retained earnings Total liabilities and equity 2M 3M P10M Income P7M Expenses (4M) Profit P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5¥1 Average rate December 31, 20x1 (closing rate) P8:¥1 P10:¥1 How much is the translated equity?
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