Nn.71.Subject :- Account a. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollarconsolidated financial statements?b.b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S.dollar consolidated financial statements?(For all requirements, round your answers to 2 decimal places.)AccountSalesInventoryEquipmentRent expenseDividendsNotes receivableAccumulated depreciation equipmentSalary payableDepreciation expense.SalesInventoryEquipmentRent expenseDividendsNotes receivableExchange RateAccumulated depreciation equipmentSalary payableDepreciation expense Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the yearending December 31, 2020, are stated in kuna (K), the local currency:SalesInventory (bought on 3/1/20)Equipment (bought on 1/1/19)Rent expenseDividends (declared on 10/1/20)Notes receivable (to be collected in 2023)Accumulated depreciation-equipmentSalary payableDepreciation expenseThe following U.S.S per kuna exchange rates are applicable:January 1, 2019Average for 2019January 1, 2020March 1, 2020October 1, 2020December 31, 2020Average for 2020$0.310.320.35K 320,000176,00084,00020,00028,00048,00025, 2007,4008,4000.370.390.40Lancer is preparing account balances to produce consolidated financial statements.

The exchange of the currencies between two countries is the exchange rate. Translated adjustments…

Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 The following U.S.S per kuna exchange rates are applicable: December 31, 2020 Average for 2020 $0.31 0.32 0.35 0.37 0.39 K 320,000 176,000 84,000 20,000 28,000 48,000 0.40 0.38 25, 200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements.

Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 October 1, 2020 The following U.S.S per kuna exchange rates are applicable: December 31, 2020 Average for 2020 $0.31 0.32 0.35 0.37 0.39 K 320,000 176,000 84,000 20,000 28,000 48,000 0.40 0.38 25, 200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements.

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Chapter7: International Law

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Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales K 210,000 Inventory (bought on 3/1/20) 105,000 Equipment (bought on 1/1/19) 62,000 Rent expense 14,000 Dividends (declared on 10/1/20) 22,000 Notes receivable (to be collected in 2023) 37,000 Accumulated depreciation—equipment 18,600 Salary payable 5,200 Depreciation expense 6,200 The following U.S.$ per kuna exchange rates are applicable: January 1, 2019 $0.20 Average for 2019 0.21 January 1, 2020 0.25 March 1, 2020 0.26 October 1, 2020 0.28 December 31, 2020 0.29 Average for 2020 0.27 Lancer is preparing account balances to produce consolidated financial statements. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in…
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Lancer, Inc. (a U.S.-based company) establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales KQ 250,000 Inventory (bought on 3/1/17) 150,000 Equipment (bought on 1/1/16) 70,000 Rent expense 16,000 Dividends (declared on 10/1/17) 24,000 Notes receivable (to be collected in 2020) 41,000 Accumulated depreciation—equipment 21,000 Salary payable 6,000 Depreciation expense 7,000 The following U.S.$ per KQ exchange rates are applicable: January 1, 2016 $0.24 Average for 2016 0.25 January 1, 2017 0.29 March 1, 2017 0.30 October 1, 2017 0.32 December 31, 2017 0.33 Average for 2017 0.31 Lancer is preparing account balances to produce consolidated financial statements. Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these…
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Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three assets: cash of 27,200 dinars, accounts receivable of 81,800 dinars, and land that cost 218,000 dinars when acquired on April 1, 2019. On January 1, 2020, Zugar has a 168,000 dinar note payable, and no other liabilities. On May 1, 2020, Zugar renders services to a customer for 138,000 dinars, which was immediately paid in cash. On June 1, 2020, Zugar incurred a 118,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinar follow: April 1, 2019 $0.51 = 1 dinar January 1, 2020 0.54 = 1 May 1, 2020 0.55 = 1 June 1, 2020 0.57 = 1 December 31, 2020 0.59 = 1 Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the dinar is the subsidiary’s functional currency. What is the translation…
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The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that has been determined as having the Israeli shekel (ILS) as its functional currency. On October 1, 2019, the Israeli subsidiary borrowed 500,000 Swiss francs (CHF) from a bank in Geneva for two years at an interest rate of 5 percent per year. The note payable and accrued interest are payable at the date of maturity. On December 31, 2020, the Israeli subsidiary has the following foreign currency balances on its books: Interest expense CHF 25,000 Interest payable CHF 31,250 Note payable CHF 500,000 Relevant exchange rates between the Israeli shekel (ILS) and Swiss franc (CHF), and between the U.S. dollar (USD) and Israeli shekel (ILS) follow: ILS per CHF USD per ILS October 1, 2019 3.86 0.30 January 1, 2020 3.91 0.29 Average for 2020 3.95 0.27 December 31, 2020 4.02 0.25 Determine the Israeli shekel amounts at which the Swiss franc balances…