13th Edition

ISBN: 9781307158120

Author: HOYLE SCHAEFE

Publisher: MCG/CREATE

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Textbook Question

Chapter 10, Problem 23P

The following accounts are denominated in rubles as of December 31, 2017. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2012. The buildings were acquired in 2013 and the patents in 2015.

	Translation	Remeasurement
Accounts payable
Accounts receivable
Accumulated depreciation—buildings
Advertising expense
Amortization expense (patents)
Buildings
Cash
Common stock
Depreciation expense
Dividends (10/1/17)
Notes payable—due in 2020
Patents (net)
Salary expense
Sales

Exchange rates for 1 ruble are as follows:

2012	1 ruble = $0.28
2013	1 = 0.26
2015	1 = 0.25
January 1, 2017	1 = 0.24
April 1, 2017	1 = 0.23
July 1, 2017	1 = 0.22
October 1, 2017	1 = 0.20
December 31, 2017	1 = 0.16
Average for 2017	1 = 0.19

Expert Solution & Answer

Chapter 10 Solutions

ACCT 5346:ADVANCED ACCOUNTING>CUSTOM<

Ch. 10 - Prob. 1Q Ch. 10 - What causes balance sheet (or translation)...Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - Prob. 6Q Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

Ch. 10 - Prob. 11Q Ch. 10 - Which translation method does U.S. GAAP require...Ch. 10 - Prob. 13Q Ch. 10 - Prob. 1P Ch. 10 - Prob. 2P Ch. 10 - Prob. 3P Ch. 10 - Prob. 4P Ch. 10 - Prob. 5P Ch. 10 - Prob. 6P Ch. 10 - Prob. 7P Ch. 10 - Prob. 8P Ch. 10 - What amount does Newberrys consolidated income...Ch. 10 - Prob. 10P Ch. 10 - Prob. 11P Ch. 10 - Prob. 12P Ch. 10 - Prob. 13P Ch. 10 - Prob. 14P Ch. 10 - Prob. 15P Ch. 10 - Prob. 16P Ch. 10 - Prob. 17P Ch. 10 - A foreign subsidiarys functional currency is its...Ch. 10 - Prob. 19P Ch. 10 - Prob. 20P Ch. 10 - Prob. 21P Ch. 10 - Prob. 22P Ch. 10 - The following accounts are denominated in rubles...Ch. 10 - Prob. 24P Ch. 10 - Prob. 25P Ch. 10 - Sullivans Island Company began operating a...Ch. 10 - Prob. 27P Ch. 10 - Prob. 28P Ch. 10 - Prob. 29P Ch. 10 - Prob. 30P Ch. 10 - Prob. 31P Ch. 10 - Prob. 32P Ch. 10 - Prob. 33P Ch. 10 - The following account balances are for the Agee...Ch. 10 - Prob. 35P Ch. 10 - Prob. 36P Ch. 10 - Prob. 37P Ch. 10 - Prob. 38P Ch. 10 - Prob. 1DYS Ch. 10 - RESEARCH CASE 2FOREIGN CURRENCY TRANSLATION...Ch. 10 - Prob. 3DYS Ch. 10 - Prob. 4DYS Ch. 10 - Prob. 5DYS

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Solution Summary: The author explains the current rate method and the temporal method.

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Chapter 10 Solutions