Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 10, Problem 30P
a.
To determine
What exchange rate would be used to report in consolidated financial statement when functional currency is kanquo.
b.
To determine
What exchange rate would be used to report in consolidated financial statement when US Dollar functional currency.
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Lancer, Inc. (a U.S.-based company) establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency:
Sales
KQ
250,000
Inventory (bought on 3/1/17)
150,000
Equipment (bought on 1/1/16)
70,000
Rent expense
16,000
Dividends (declared on 10/1/17)
24,000
Notes receivable (to be collected in 2020)
41,000
Accumulated depreciation—equipment
21,000
Salary payable
6,000
Depreciation expense
7,000
The following U.S.$ per KQ exchange rates are applicable:
January 1, 2016
$0.24
Average for 2016
0.25
January 1, 2017
0.29
March 1, 2017
0.30
October 1, 2017
0.32
December 31, 2017
0.33
Average for 2017
0.31
Lancer is preparing account balances to produce consolidated financial statements.
Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these…
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency:
Sales
K
330,000
Inventory (bought on 3/1/20)
181,500
Equipment (bought on 1/1/19)
86,000
Rent expense
22,000
Dividends (declared on 10/1/20)
28,000
Notes receivable (to be collected in 2023)
49,000
Accumulated depreciation—equipment
25,800
Salary payable
7,600
Depreciation expense
8,600
The following U.S.$ per kuna exchange rates are applicable:
January 1, 2019
$0.32
Average for 2019
0.33
January 1, 2020
0.37
March 1, 2020
0.38
October 1, 2020
0.40
December 31, 2020
0.41
Average for 2020
0.39
Lancer is preparing account balances to produce consolidated financial statements.
Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in…
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency:
Sales
K
210,000
Inventory (bought on 3/1/20)
105,000
Equipment (bought on 1/1/19)
62,000
Rent expense
14,000
Dividends (declared on 10/1/20)
22,000
Notes receivable (to be collected in 2023)
37,000
Accumulated depreciation—equipment
18,600
Salary payable
5,200
Depreciation expense
6,200
The following U.S.$ per kuna exchange rates are applicable:
January 1, 2019
$0.20
Average for 2019
0.21
January 1, 2020
0.25
March 1, 2020
0.26
October 1, 2020
0.28
December 31, 2020
0.29
Average for 2020
0.27
Lancer is preparing account balances to produce consolidated financial statements.
Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in…
Chapter 10 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 10 - Prob. 1QCh. 10 - What causes balance sheet (or translation)...Ch. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Prob. 9QCh. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Which translation method does U.S. GAAP require...Ch. 10 - Prob. 13QCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - What amount does Newberrys consolidated income...Ch. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - A foreign subsidiarys functional currency is its...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - The following accounts are denominated in rubles...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Sullivans Island Company began operating a...Ch. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - The following account balances are for the Agee...Ch. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - Prob. 1DYSCh. 10 - RESEARCH CASE 2FOREIGN CURRENCY TRANSLATION...Ch. 10 - Prob. 3DYSCh. 10 - Prob. 4DYSCh. 10 - Prob. 5DYS
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