Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 150,000 pesos that is sold on January 17, 2018, for 178,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows: November 1, 2017 $ .18 = 1 peso December 31, 2017 .19 = 1 January 17, 2018 .20 = 1 January 31, 2018 .21 = 1 1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017? $28,500. $27,000. $30,000. $31,500. 2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018? $27,000. $30,000. $28,500. $31,500.
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 150,000 pesos that is sold on January 17, 2018, for 178,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows: November 1, 2017 $ .18 = 1 peso December 31, 2017 .19 = 1 January 17, 2018 .20 = 1 January 31, 2018 .21 = 1 1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017? $28,500. $27,000. $30,000. $31,500. 2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018? $27,000. $30,000. $28,500. $31,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 150,000 pesos that is sold on January 17, 2018, for 178,000 pesos. The subsidiary pays for the inventory
on January 31, 2018. Currency exchange rates are as follows:
| November 1, 2017 | $ .18 = 1 peso |
| December 31, 2017 | .19 = 1 |
| January 17, 2018 | .20 = 1 |
| January 31, 2018 | .21 = 1 |
1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
$28,500.
$27,000.
$30,000.
$31,500.
2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
$27,000.
$30,000.
$28,500.
$31,500.
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