Fundamentals of Advanced Accounting
6th Edition
ISBN: 9780077862237
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 8, Problem 13P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Purple Corp starts a subsidiary in a foreign country in 2020; the subsidiary has the peso as its functional currency and has enjoyed very small inflation over the last few years. The subsidiary has Cash 40,000 pesos and Accounts Payable totalling 25,000 pesos. Both were generated throughout the fiscal year. Currency exchange rates for 1 peso are as follows:Jan. 1 $0.15 US = 1 peso; Dec. 31 $0.21 US = 1 peso; 2018 Average $0.18 US = 1 peso What amount should Purple Corp's consolidated balance sheet report for these two items in US Dollars.
Cash =
Accounts Payable =
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria, where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):
Cash
NGN
16,000
Notes payable
NGN
20,000
Inventory
10,000
Common stock
20,000
Land
4,000
Retained earnings
10,000
Building
40,000
Accumulated depreciation
(20,000
)
NGN
50,000
NGN
50,000
The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place:
2020
Feb.
1
Paid 8,000,000 NGN on the note payable.
May
1
Sold entire inventory for 16,000,000 NGN on account.
June
1
Sold land for 6,000,000 NGN cash.
Aug.
1
Collected all accounts receivable.
Sept.
1
Signed long-term note to receive 8,000,000 NGN cash.
Oct.
1
Bought inventory for 20,000,000 NGN cash.
Nov.
1…
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]):
Cash
NGN
16,800
Notes payable
NGN
20,400
Inventory
12,000
Common stock
22,400
Land
4,200
Retained earnings
11,200
Building
42,000
Accumulated depreciation
(21,000
)
NGN
54,000
NGN
54,000
Chapter 8 Solutions
Fundamentals of Advanced Accounting
Ch. 8 - Prob. 1QCh. 8 - What causes balance sheet (or translation)...Ch. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - Which translation method does U.S. GAAP require...Ch. 8 - Prob. 13QCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - A foreign subsidiarys functional currency is its...Ch. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Prob. 1DYSCh. 8 - Prob. 2DYSCh. 8 - Prob. 3DYSCh. 8 - Prob. 4DYSCh. 8 - Prob. 5DYS
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