Required: 1. Translate Swoboda's financial statements into U.S. dollars in accordance with U.S. GAAP at December 31, Year 2, using the following scenarios. a. Assume the Polish zloty is the functional currency. The December 31, Year 1, retained earnings amount that appeared in Swoboda's translated financial statements was $56,250. The December 31, Year 1, cumulative translation adjustment that Swobodo's translated balance sheet was negative $506,250.

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Christina Company (a U.S.-based company) has a subsidiary in Canada that began operations at the start of 2020 with assets of 142,000 Canadian dollars (CAD) and liabilities of CAD 74,000. During this initial year of operation, the subsidiary reported a profit of CAD 36,000. It distributed two dividends, each for CAD 6,000 with one dividend declared on March 1 and the other on October 1. Applicable U.S. dollar ($) exchange rates for 1 Canadian dollar follow:       January 1, 2020 (start of business) $0.79 March 1, 2020 0.77 Weighted average rate for 2020 0.76 October 1, 2020 0.75 December 31, 2020 0.74   Compute the net translation adjustment the company will report in accumulated other comprehensive income for the year 2020 under this second set of circumstances.  Assume that the Canadian dollar is this subsidiary’s functional currency. What translation adjustment would the company report for the year 2020?

Apex Ltd, is a computer software manufacturing company based in the United States of America (USA). On 1st January 2019, it sold goods worth Kn10,000.00 to Electro Computers, a company based in Zambia. Electro computers Ltd paid for the software in June 2019. The prevailing exchange rates were: January 2019: Kn12:00 : US $ 1.00 June 2019: Kn 12:30 : US $ 1.00 Required: Show how the necessary accounting entries for the transaction will be reflected in the books of each company.

On November 2, 201*, Sade entered into firm commitment with Singaporean firm to acquire an equipment, delivery andpassage of title on February 28, 201* at a price of 5,000 Singapore Dollar (SGD). On the same date, to hedge againstunfavorable changes in exchange rate of SGD, Sade entered into a 120-day forward contract with Andy Bank for 5,000SGD. The relevant exchange rates were as follows:11/2/201*12/31/201* 02/28/201*Spot Rate 34 36 37Forward Rate 35 38 37How much is the recognized derivative liability as of December 31, 201* as a result of the above transactions?

On December 1, Year 1, Triaxal Incorporation enters into a forward contract to sell one million Philippines pesos (PP) to its bank in exchange for Canadian dollars on March 1, Year 2, at the market rate for a 90-day forward contract of PP1=$0.0227. On December 31, Year 1, Triaxal’s year-end, the 60-day forward rate to sell Philippines pesos on March 1 is quoted at PP1=$0.0222. On March 1, Year 2, the currencies are exchanged when the spot rate is PP1=$0.0220. Required Prepare journal entries for speculative forward contract under Gross Method and Net Method.

Yang Corporation starts a foreign subsidiary on January 1 by investing 20,000 rand. Yang owns all of the shares of the subsidiary’s common stock. The foreign subsidiary generates 40,000 rand of net income throughout the year and pays no dividends. The rand is the foreign subsidiary’s functional currency. Currency exchange rates for 1 rand are as follows:In preparing consolidated financial statements, what translation adjustment will Yang report at the end of the current year?a. $400 positive (credit).b. $1,000 positive (credit).c. $1,400 positive (credit).d. $2,400 positive (credit).

7. A foreign subsidiary of the Bart Corporation has certain balance sheet accounts on December 31, 20X2. Information relating to these accounts in U.S. dollars is as follows: Restated at Current Rates Historical Rates Marketable (Available-for-Sale and Trading) securities $ 75,000 $ 85,000 Inventories, carried at average cost Refundable deposits Goodwill 600,000 25,000 55,000 $ 755,000 700,000 30,000 70,000 $ 885,000 What total should be included in Bart's balance sheet on December 31, 20X2, as a result of the preceding information? Foreign Currency is Functional Currency $780,000 $870,000 $755,000 $880,000 U.S. Dollar is Functional Currency $870,000 $755,000 $780,000 $880,000 x

On January 1, 2024, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2024 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2024 Direct exchange rates for Swiss franc are: Required: A. Translate the year-end balance sheet and income statement of foreign subsidiary using the current rate method of translation. B. Prepare a schedule to verify the translation adjustment. Cash and Receivables Net Property, Plant, and Equipment 40,000 37,000 60,000 92,000 30,000 32,000 20,000 20,000 10,000 40,000 60,000 92,000 Totals Accounts and Notes Payable Common Stock Retained Earnings Totals GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2024 Jan. 1 Dec. 31 20,000 55,000 Revenues 75,000 Operating…

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 138,000 kites (the local currency unit) and liabilities of 66,000. During this initial year of operation, the subsidiary reported a profit of 32,000 kites. It distributed two dividends, each for 5,600 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:       January 1, 2017 (start of business) $0.75 March 1, 2017 0.73 Weighted average rate for 2017 0.72 October 1, 2017 0.71 December 31, 2017 0.70   Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017? Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 260,000 kites in three months at a forward exchange rate of $0.71/1 kite. Prepare the journal entries required by this…