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 Inventory Land Building Accumulated depreciation 2020 Feb. 1 Paid 8,150,000 NGN on the note payable. NGN 16,750 11,500 4,150 41,500 (20,750) NGN 53,150 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: May 1 Sold entire inventory for 17,500,eee NGN on account. June 1 Sold land for 6,150,000 NGN cash. Aug. 1 Collected all acco ts receivable. 2011 2013 August 1, 2019 December 31, 2019 February 1, 2020 May 1, 2020 June 1, 2020 August 1, 2020 September 1, 2020 October 1, 2020 November 1, 2020 December 1, 2020 December 31, 2020 Average for 2020 Sept. 1 Signed long-term note to receive 8,150,000 NGN cash. Oct. 1 Bought inventory for 20,150,000 NGN cash. Nov. 1 Bought land for 3,150,000 NGN on account. Dec. 1 Declared and paid 3,150,000 NGN cash dividend to parent. Dec.31 Recorded depreciation for the entire year of 2,075,000 NGN. The US dollar ($) exchange rates for 1 NGN are as follows: a. Positive b. Remeasurement gain NGN 1 = $0.0063 1 = 1 = 1. 1= 1 = 1 = 1 = 1 = 1 = Notes payable Common stock Retained earnings 0.0057 0.0077 0.0079 0.0081 0.0083 0.0085 0.0089 0.0091 0.0093 0.0095 0.0097 0.0114 0.0104 NGN 20,300 21,900 10,950 a. Assuming the NGN is the subsidiary's functional currency, what is the translation adjustment determined solely for 2020? b. Assuming the U.S.$ is the subsidiary's functional currency, what is the remeasurement gain or loss determined solely for 2020? (Input all amounts as positive. Enter amounts in whole dollars.) NGN 53,150 translation adjustment S 84,044 $ 8,528

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…

A Katz Corporation subsidiary buys marketable equity securities and inventory on April 1, 2024, for 100,000 won each. It pays for both items on June 1, 2024, and they are still on hand at year-end. Inven- tory is carried at cost under the lower-of-cost-or-net realizable rule. Currency exchange rates in 2024 follow: January 1 April 1 June 1 December 31 ...... $0.15 1 won 0.16 = 1 0.17 = 1 0.19 = 1 10. Assume that the won is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31, 2024? a. Marketable equity securities = $16,000 and Inventory = $16,000 b. Marketable equity securities = $17,000 and Inventory = $17,000 c. Marketable equity securities = $19,000 and Inventory = $16,000 d. Marketable equity securities = $19,000 and Inventory = $19,000 11. Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consoli- dated balance sheet report as of December 31, 2024? a. Marketable equity securities =…

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The following balance sheet accounts of a foreign subsidiary at December 31, 2017, have been translated into U.S. dollars as follows:       Translated at     Current Rates   Historical Rates Accounts receivable, current   $ 600,000   $ 600,000 Accounts receivable, long-term   300,000   324,000 Inventories carried at market   180,000   198,000 Goodwill   190,000   220,000     $1,270,000   $ 1,402,000 What total should be included in the translated balance sheet at December 31, 2017, for the above items? Assume the U.S. dollar is the functional currency.       $1,354,000   $1,270,000   $1,288,000   $1,300,000

Journal entries for an account payable denominated in Mexican Pesos ($US weakens and strengthens) Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos (Peso) in the amount of 350,000 Pesos. Your company operates on a calendar year basis. Assume the following exchange rates: December 15 $0.046:1 Peso December 31 $0.053:1 Peso March 15 $0.050:1 Peso Prepare the journal entries to record the purchase (assume perpetual inventory accounting), the required adjusting entry at December 31, and the payment on March 15. General Journal Date Description Debit Credit Accounts payable Accounts payable Dec 15 Inventory Dec 31 Foreign currency transaction loss Mar 15 Accounts payable ÷ 16,100 0 0 16,100 2,450 0 0 2,450 28,000 × 0 Foreign currency transaction gain 0 10,500 x Cash 0 17,500

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