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?

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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