WileyPLUS A https://edugen.wileyplus.com/edugen/Iti/main.uni Return to Blackboard Jeter, Advanced Accounting, 6e Help | System Announcements CALCULATOR PR Exercise 13-4 On January 1, 2014, 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 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,600 54,400 Net Property, Plant, and Equipment 40,200 37,600 Totals 59,800 92,000 Accounts and Notes Payable 29,500 32,200 Common Stock 19,600 19,600 Retained Earnings 10,700 40,200 Totals 59,800 92,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 74,900 Operating Expenses including Depreciation of 2,600 francs Net Income Dividends Declared and Paid 30,600 44,300 14,800 Increase in Retained Earnings 29,500 Direct exchange rates for Swiss franc are: Dollars per Franc January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date $0.5987 0.5321 0.5654 0.5810 (a) Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to o decimal places, e.g. 5,125. Enter lass and deb Transfation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) 105arch
WileyPLUS A https://edugen.wileyplus.com/edugen/Iti/main.uni Return to Blackboard Jeter, Advanced Accounting, 6e Help | System Announcements CALCULATOR PR Exercise 13-4 On January 1, 2014, 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 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,600 54,400 Net Property, Plant, and Equipment 40,200 37,600 Totals 59,800 92,000 Accounts and Notes Payable 29,500 32,200 Common Stock 19,600 19,600 Retained Earnings 10,700 40,200 Totals 59,800 92,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 74,900 Operating Expenses including Depreciation of 2,600 francs Net Income Dividends Declared and Paid 30,600 44,300 14,800 Increase in Retained Earnings 29,500 Direct exchange rates for Swiss franc are: Dollars per Franc January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date $0.5987 0.5321 0.5654 0.5810 (a) Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to o decimal places, e.g. 5,125. Enter lass and deb Transfation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) 105arch
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jeter, Advanced Accounting, 6e
Help | System Announcements
CALCULATOR
PR
Exercise 13-4
On January 1, 2014, 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
2014 financial statements stated in Swiss francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
19,600
54,400
Net Property, Plant, and Equipment
40,200
37,600
Totals
59,800
92,000
Accounts and Notes Payable
29,500
32,200
Common Stock
19,600
19,600
Retained Earnings
10,700
40,200
Totals
59,800
92,000
GRANT MANAGEMENT CONSULTANTS
Consolidated Income and Retained Earnings Statement
for the Year Ended December 31, 2014
Revenues
74,900
Operating Expenses including Depreciation of 2,600 francs
Net Income
Dividends Declared and Paid
30,600
44,300
14,800
Increase in Retained Earnings
29,500
Direct exchange rates for Swiss franc are:
Dollars per Franc
January 1, 2014
December 31, 2014
Average for 2014
Dividend declaration and payment date
$0.5987
0.5321
0.5654
0.5810
(a)
Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to o decimal places, e.g. 5,125. Enter lass and deb
Transfation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
105arch
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