It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss. Appropriate exchange rate for the given transaction.

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Answer 1

Question

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

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Answer 2

Question

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

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Answer 3

Question

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

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Answer 4

Question

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

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Answer 5

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

Answer 6

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

Answer 7

Chapter 12, Problem 12.32P

(a)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Appropriate exchange rate for the given transaction.

Answer 8

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

Answer 9

(b)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

The direct exchange rate for January 1, 20X4.

Answer 10

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

Answer 11

(c)

To determine

Introduction: It is the method used to convert financial results of the business of subsidiary company into the functional currency of parent company. Gain or loss arise due to sale or purchase of goods and services in a foreign currency is known as foreign currency transaction gain or loss.

Whether U.S dollar strengthened or weakened against the local currency unit during 20X4.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Prob. 12.1Q Ch. 12 - Prob. 12.2Q Ch. 12 - Prob. 12.3Q Ch. 12 - How widely used are IFRS? Can IFRS be used for...Ch. 12 - Prob. 12.5Q Ch. 12 - Prob. 12.6Q Ch. 12 - Prob. 12.7Q Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains the method used to convert financial results of the business of subsidiary company into the functional currency of parent company.

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