Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets PIOM PSM 2M Total liabilities Share capital Retained earnings Total liabilities and equity 3M PIOM Income P7M Expenses Profit (4M) P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5:¥1 Average rate December 31, 20xl (closing rate) P8:¥1 P10:¥1

Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets PIOM PSM 2M Total liabilities Share capital Retained earnings Total liabilities and equity 3M PIOM Income P7M Expenses Profit (4M) P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5:¥1 Average rate December 31, 20xl (closing rate) P8:¥1 P10:¥1

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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