Company PriceBest established a wholly-owned Company Sugar on 1 January 2019. Sugar has a functional currency in USD but PriceBest requires Sugar to use SGD as its presentation currency. Company Sugar Statement of Financial Position As at 31 December 2019 USD Property 20,000 Cash 130,000 Inventory 200,000 Accounts receivable 100,000 450,000 Share capital 150,000 Retained earnings 270,000 Accounts payable 30,000 450,000 USD/SGD spot rates 1 January 2019 1.24 31 December 2019 1.36 Average for the year of 2019 1.30 Required: Translate Sugar’s statement of financial position as at 31 December 2019 from USD to SGD using the closing rate method.
Company PriceBest established a wholly-owned Company Sugar on 1 January 2019. Sugar has a functional currency in USD but PriceBest requires Sugar to use SGD as its presentation currency. Company Sugar Statement of Financial Position As at 31 December 2019 USD Property 20,000 Cash 130,000 Inventory 200,000 Accounts receivable 100,000 450,000 Share capital 150,000 Retained earnings 270,000 Accounts payable 30,000 450,000 USD/SGD spot rates 1 January 2019 1.24 31 December 2019 1.36 Average for the year of 2019 1.30 Required: Translate Sugar’s statement of financial position as at 31 December 2019 from USD to SGD using the closing rate method.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 29E
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Company PriceBest established a wholly-owned Company Sugar on 1 January 2019. Sugar has a functional currency in USD but PriceBest requires Sugar to use SGD as its presentation currency.
Company Sugar Statement of Financial Position As at 31 December 2019
|
|
USD |
|
Property |
20,000 |
|
Cash |
130,000 |
|
Inventory |
200,000 |
|
|
100,000 |
|
450,000 |
|
|
Share capital |
150,000 |
|
|
270,000 |
|
Accounts payable |
30,000 |
|
450,000 |
|
USD/SGD spot rates |
|
|
1 January 2019 |
1.24 |
|
31 December 2019 |
1.36 |
|
Average for the year of 2019 |
1.30 |
Required: Translate Sugar’s statement of financial position as at 31 December 2019 from USD to SGD using the closing rate method.
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