Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 2019, for $137800. Leodetermined that the Great Britain Pound was the functional currency. On December 31, 2019, the British subsidiary'sadjusted trial balance, translated into U.S. dollars, contained $19500 more debits than credits. The British subsidiaryreported income of 93400 pounds for 2019 and paid a cash dividend of 32500 pounds on October 25, 2019. Leo usesthe fully adjusted equity method of accounting for its investment. Exchange rates at various dates during 2019 follow:January 11£ =1.21October 251£ =1.24December 311£ =1.27Average for the year1f =1.23Based on the preceding information, the receipt of the dividend will result in a credit to the investment account in theamount of:BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF$1,000.Your Answer:

Based on preceeding information, the receipt of the dividend will result in a credit to the…

trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid a cash div adjusted equity method of accounting for its investme January 1 1f = 1.21 October 25 1£ = 1.24 December 31 1£ = 1.27 e for the year 1£ = 1.23

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At 30 June 2018 a company’s allowance for receivables was £39,000 At June 2019, trade receivables totalled £517,000. The company decided to write off debts totalling £37,000. The receivables allowance was to be adjusted to an amount equals to 5% of the trade receivables based on the post events. What figure should appear in the statement of profit and loss account for the year ended 30 June 2019?
Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2020, Brief correctly included this receivable for 377,500 local currency units (LCU) in its balance sheet at $290,000. When Brief collected the receivable on February 15, 2021, the U.S. dollar equivalent was $301,200. In Brief's 2021 consolidated income statement, how much should it report as a foreign exchange gain? Multiple Choice $16,200 $27,400 $0 $11,200
A US company, acquired an interest in Kamins Co, a foreign company in March 2017, when 1 FC equaled $1.52. Kamins is a foreign company whose functional currency is the FC. The condensed preclosing comparative trial balance for Kamins for the year ended December 31, 2019, is a follows:
Translation and Remeasurement Gains and Losses Amcrest France Sarl, located in Paris France, is a financial subsidiary of Target Corporation, a U.S. company. Amcrest's accounts are re- ported in euros. Assume that the following data relate to Amcrest's activities for 2020 (in millions). €(15,000) 5,400 Net monetary liabilities, beginning of year. Net assets, beginning of year.. Transactions during 2020: Sales.... 72,000 59,000 ...... Inventory purchases.. Depreciation and amortization Cost of sales..... Cash operating expenses.. Dividends declared and paid New long-term interest borrowings 1,000 61,000 9,500 100 300 Sales, inventory purchases, and cash operating expenses were reported evenly throughout the year. Exchange rates are as follows ($/€): Beginning of 2020 Average for 2020 End of 2020 $1.30 1.24 1.20 ... .. Rate when assets related to depreciation and amortization were acquired Rate when dividends declared...... Rate when long-term interest borrowings occurred 1.45 1.21 1.25…
Clark Company paid Sherman Company for merchandise with a $4,000, 60-day, 9% note dated April 1. If Clark Company pays the note at maturity, what entry should Sherman make at that time? Select one: a. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense A) +4,360 -4,000 +360 +360 b. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense B) -4,360 -4,000 -360 +360 c. BALANCE SHEET INCOME STATEMENT ASSETS = LIABILITIES + STOCKHOLDER'SEQUITY REVENUE - EXPENSE Cash NotesReceivable NotesPayable Retained Earnings InterestIncome InterestExpense C) +4,060 -4,000 +60 +60 d. BALANCE SHEET INCOME STATEMENT ASSETS =…
with calculation
KA. On July 1, 2019, Great White North (GWN) Inc. purchased merchandise from a supplier in the U.S. for US$800,000 with terms requiring full payment by October 31, 2019. GWN has a July 31st year end. On October 31, 2019, GWN paid its supplier in full. Selected dates and spot rates are shown below: July 1, 2019 CDN $1.2150 July 31, 2019 CDN $1.2175 October 31, 2019 CDN $1.22 1) Prepare all journal entries on Settlement date. 2) Prepare all journal entries that would be prepared at year end.
The trial balance of Novak Ltd. at December 31, 2020, follows: Debits Credits Cash $295,000 Sales revenue $10,299,000 FV-NI investments (at fair value) 323,000 Cost of goods sold 6,400,000 Bond investment at amortized cost 429,000 FV—OCI investments (fair value $445,000) 378,000 Notes payable (due in six months) 99,000 Accounts payable 805,000 Selling expenses 2,460,000 Investment income or loss* 11,000 Land 320,000 Buildings 2,940,000 Dividends payable 56,000 Income tax payable 106,000 Accounts receivable 705,000 Accumulated depreciation—buildings 232,000 Allowance for doubtful accounts 37,000 Administrative expenses 930,000 Interest expense 251,000 Inventory 767,000 Gain on disposal of land…
Adjusting Entry at Balance Sheet Date Yum! Brands, Inc. has the following receivables and payables denominated in foreign currencies, prior to closing on December 31. The spot rates at December 31 are also given. Item Current $ balance FC balance December 31 spot rate 1. Receivable $65,000 1,000,000 Mexican pesos $0.06 2. Receivable 165,000 225,000 Canadian dollars 0.75 3. Payable 556,000 400,000 Jordan dinar 1.41 4. Payable 56,000 200,000 Saudi Arabian riyal 0.27 Required Prepare the adjusting entry recorded by Yum! Brands at December 31. Description Debit Credit AnswerAccounts receivableCashExchange gainExchange loss? AnswerAccounts receivableCashExchange gainExchange loss? Accounts payable
Items EUR/USO USD/MYR USD/SGD SPOT (28 october 20L8) 1.1017/18 4.2200/099 1.3917/87 1 MONTH 437/492 74/119 106/138 2 MONTH 10/106 152/202 225/285 3 MONTH 187/+187 278/228 36/42 Table 1: quoted by banks as at 28 October 201s. Based on the above rates, calculate the following (assume no margins or charges are imposed and all exchange controls/regulations are complied with): a. Quoting bank sells USD/MYR at value spot b. Quoting bank buys SGD/MYR fixed 3 month delivery c. Exporter sells USD/MYR option spot to 3 month d. Importer buys EUR/SGD 1 month to 2 month delivery
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash Inventory Land Building Accumulated depreciation 2011 2013 2020 Feb. 1 Paid 8,140,000 NGN on the note payable. May 1 Sold entire inventory for 17,400,000 NGN on account. June 1 Sold land for 6,140,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,140,000 NGN cash. Oct. 1 Bought inventory for 20,140,000 NGN cash. Nov. 1 Bought land for 3,140,000 NGN on account. Dec. 1 Declared and paid 3, 140,000 NGN cash dividend to parent. Dec.31 Recorded depreciation for the entire year of 2,070,000 NGN. The U.S dollar ($) exchange rates for 1 NGN are as follows: 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,…
co de Y- D E F G H 1 K 18. Platypus Ltd exports goods to Harlom Inc. All sales contracts are denominated in US dollars. Sales of US$5 million are made on 1 May 2022, FOB Sydney. The amount is due for payment by Harlom Inc. on 1 September 2022. Platypus Ltd's reporting date is 30 June. Additional information Date Spot rate 1 May 2022 A$1.00 US$0.84 30 June 2022 A$1.00 US$0.85 1 September 2022 A$1.00 = US$0.86 REQUIRED Prepare the journal entries for Platypus Ltd to account for the above transaction. LO 30.2, 30.3, 30.5 Sheet1