$1,200,000$1,900,000$700,000 ($500,000 January 1, 2020)$400,000CashAccounts ReceivableInventoryPlant and Equipment (net)$4.200.000$400,000$2,000,000$1,000,000$800.000$4.200.000Current LiabilitiesBonds PayableCommon SharesRetained EarningsSales, purchases, bond interest, and other expenses occurred evenly throughout the year.US1 is considered to be a foreign subsidiary that has the same functional currency as ABC Inc.'s functional currency.Which of the following rates would be used to translate the company's sales?Select one:OA US$1 = CONS0.815OB. US$1= CDNSO.825OC. US$1 = CDNSO.8175OD. USS1 $0.83 CDN ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquiredJanuary 1, 2020. US1 submitted its financial statements for 2020 to ABC. Selected exchange rates in effect throughout2020 are shown below:January 1, 2020:December 31, 2020:Average for 2020:Date of Purchase of Inventory onHand:US $1-CDN $0.815US $1CDN $0.8176CDN $0.825CDN $0.83US $1-US $1 =Date Dividends were declared:US $1 =CDN $0.8125US1 financial results for 2020 were as follows:US1 Financial Statementsat December 31, 2020(in U.S. dollars)Income Statement:Sales$5.000,000$3,500,000Cost of SalesDepreciation Expense

Sales refer to the concept when a business exchanges its goods and services with a customer in…

Answered: ent Liabilities s Payable mon Shares…

Business

Accounting

ent Liabilities s Payable mon Shares ined Earnings

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 100,000 pesos that is sold on January 17, 2018, for 130,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:Cost of goods sold . . .. LCU 5,000,000Beginning inventory . . . . . . . 500,000Ending inventory . . . . . . . . . . 600,000November 1, 2017 . . . . $0.16 = 1 pesoDecember 31, 2017 . ...... . . 0.17 = 1January 17, 2018 . . . . . . . . . 0.18 = 1January 31, 2018 . . . . . . . . 0.19 = 1What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?a. $16,000.b. $17,000.c. $18,000.d. $19,000.
A subsidiary of Dunder Inc., a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle (§) which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2020, for §160,000 that was sold on January 17, 2021 for §207,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Stickle were as follows: November 1, 2020 $ 0.21 = § 1 December 31, 2020 $ 0.22 = § 1 January 1, 2021 $ 0.24 = § 1 January 31, 2021 $ 0.25 = § 1 Average for 2021 $ 0.27 = § 1 What amount would have been reported for this inventory in Dunder’s consolidated balance sheet at December 31, 2020?
A subsidiary of Cadbury Corp. located in a foreign country whose functional currency is the foreign currency. The subsidiary acquires inventory on credit on November 1, 2015, for 100,000 foreign currencies (F) that is sold on January 17, 2016 for 130,000 foreign currencies (FC). The subsidiary pays for the inventory on January 31, 2016. Currency exchange rates for 1 foreign currency (FC) are as follows:November 1, 2015 P 0.16 = 1 FCNovember 31, 2015 0.17 = 1November 17, 2016 0.18 = 1January 31, 2016 0.19 = 1Average for 2016 0.20 = 14. What amount does Cadbury’s consolidated balance sheet report for this inventory at December 31, 2015?A. P 16,000 B. P 17,000 C. P 18,000 D. P 19,0005. What amount does Cadbury’s consolidated income statement report for cost of goods sold for the year ending December 31, 2016?A. P 16,000 B. P 17,000 C. P 18,000 D. P 19,000
Problems 8 and 9 are based on the following information.Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 100,000 pesos that is sold on January 17, 2018, for 130,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?a. $16,000.b. $17,000.c. $18,000.d. $19,000.
Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale’s functional currency was the stickle (§). The following transactions and events occurred during 2021: Jan. 1 Gale issued common stock for §2,000,000. June 30 Gale paid dividends of §50,000. Dec. 31 Gale reported net income of §120,000 for the year. Exchange rates for 2021 were: Jan. 1 $ 1 = § 0.50 June 30 $ 1 = § 0.47 Dec. 31 $ 1 = § 0.44 Weighted average rate for the year $ 1 = § 0.46 What was the amount of the translation adjustment for 2021?
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 150,000 pesos that is sold on January 17, 2018, for 178,000 pesos. The subsidiary pays for the inventoryon January 31, 2018. Currency exchange rates are as follows: November 1, 2017 $ .18 = 1 peso December 31, 2017 .19 = 1 January 17, 2018 .20 = 1 January 31, 2018 .21 = 1 1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?$28,500.$27,000.$30,000.$31,500. 2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?$27,000.$30,000.$28,500.$31,500.
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 100,000 pesos that is sold on January 17, 2018, for 130,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows: November 1, 2017 $0.16 = 1 peso December 31, 2017 0.17 = 1 January 17, 2018 0.18 = 1 January 31, 2018 0.19 = 1 LO 8-2, 8-3 What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017? $16,000. $17,000. $18,000. $19,000.
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 100,000 pesos that is sold on January 17, 2018, for 130,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows: November 1, 2017 $0.16 = 1 peso December 31, 2017 0.17 = 1 January 17, 2018 0.18 = 1 What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018? $16,000. $17,000. $18,000. $19,000.
Diekmann Company, a U.S.-based company, acquired a 100 percent interest in Rakona A.S. in the Czech Republic on January 1, 2016, when the exchange rate for the Czech koruna (Kčs) was $0.05. Rakona’s financial statements as of December 31, 2017, two years later, follow: Balance SheetDecember 31, 2017 Assets Cash Kčs 2,000,000 Accounts receivable (net) 3,300,000 Inventory 8,500,000 Equipment 25,000,000 Less: Accumulated depreciation (8,500,000 ) Building 72,000,000 Less: Accumulated depreciation (30,300,000 ) Land 6,000,000 Total assets Kčs 78,000,000 Liabilities and Stockholders’ Equity Accounts payable 2,500,000 Long-term debt 50,000,000 Common stock 5,000,000 Additional paid-in capital 15,000,000 Retained earnings 5,500,000 Total liabilities and stockholders’ equity Kčs 78,000,000 Income StatementFor Year Ending December 31, 2017 Sales Kčs 25,000,000 Cost of goods…
Diekmann Company, a U.S.-based company, acquired a 100 percent interest in Rakona A.S. in the Czech Republic on January 1, 2016, when the exchange rate for the Czech koruna (Kčs) was $0.05. Rakona’s financial statements as of December 31, 2017, two years later, follow: Balance SheetDecember 31, 2017 Assets Cash Kčs 2,000,000 Accounts receivable (net) 3,300,000 Inventory 8,500,000 Equipment 25,000,000 Less: Accumulated depreciation (8,500,000 ) Building 72,000,000 Less: Accumulated depreciation (30,300,000 ) Land 6,000,000 Total assets Kčs 78,000,000 Liabilities and Stockholders’ Equity Accounts payable 2,500,000 Long-term debt 50,000,000 Common stock 5,000,000 Additional paid-in capital 15,000,000 Retained earnings 5,500,000 Total liabilities and stockholders’ equity Kčs 78,000,000 Income StatementFor Year Ending December 31, 2017 Sales Kčs 25,000,000 Cost of goods…
Diekmann Company, a U.S.-based company, acquired a 100 percent interest in Rakona A.S. in the Czech Republic on January 1, 2016, when the exchange rate for the Czech koruna (Kčs) was $0.05. Rakona’s financial statements as of December 31, 2017, two years later, follow: Balance SheetDecember 31, 2017 Assets Cash Kčs 2,000,000 Accounts receivable (net) 3,300,000 Inventory 8,500,000 Equipment 25,000,000 Less: Accumulated depreciation (8,500,000 ) Building 72,000,000 Less: Accumulated depreciation (30,300,000 ) Land 6,000,000 Total assets Kčs 78,000,000 Liabilities and Stockholders’ Equity Accounts payable 2,500,000 Long-term debt 50,000,000 Common stock 5,000,000 Additional paid-in capital 15,000,000 Retained earnings 5,500,000 Total liabilities and stockholders’ equity Kčs 78,000,000 Income StatementFor Year Ending December 31, 2017 Sales Kčs 25,000,000 Cost of goods…
Diekmann Company, a U.S.-based company, acquired a 100 percent interest in Rakona A.S. in the Czech Republic on January 1, 2016, when the exchange rate for the Czech koruna (Kčs) was $0.05. Rakona’s financial statements as of December 31, 2017, two years later, follow: Balance SheetDecember 31, 2017 Assets Cash Kčs 2,000,000 Accounts receivable (net) 3,300,000 Inventory 8,500,000 Equipment 25,000,000 Less: Accumulated depreciation (8,500,000 ) Building 72,000,000 Less: Accumulated depreciation (30,300,000 ) Land 6,000,000 Total assets Kčs 78,000,000 Liabilities and Stockholders’ Equity Accounts payable 2,500,000 Long-term debt 50,000,000 Common stock 5,000,000 Additional paid-in capital 15,000,000 Retained earnings 5,500,000 Total liabilities and stockholders’ equity Kčs 78,000,000 Income StatementFor Year Ending December 31, 2017 Sales Kčs 25,000,000 Cost of goods…