Translate the foreign currency financial statements below using the current rate (functional) method.Assume the company was incorporated, began business, and became subsidiary of an US firm on January1, 2016, and the foreign currency was the functional currency.DateJanuary 1, 2016January 1, 2019March 31, 2019Rate1 FC=$0.101 FC=$0.201 FC=$0.251 FC=$0.401 FC=$0.30December 31, 2019Weighted average for 2019Financial Statements of Street Corporation for the year ended December 31, 2019FCRateDollarsIncome StatementNet salesCosts and expensesNet income10,000,0008,000,0002,000,000Statement of Retained EarningsBeginning retained earnings8,000,0002,000,00010,000,0001,000,0009,000,0001,600,000Net incomeSubtotalDividends (declared March 31)Ending retained earningsBalance SheetAssetsCurrent assetsFixed assets (acquired 1/1/2016)Total assets13,000,00082,000,00095,000,000Liabilities and stockholders' equityCurrent liabilities|Long-term debt|Common stock (issued 1/1/2016)Paid-in capitalRetained earningsCumulative translation adjustment (?)Total liabs. and stockholders' equity6,000,00034,000,00020,000,00026,000,0009,000,00095,000,000

In Finance and accounting, an exchange rate means the rate at which the currency of one country can…

Answered: Translate the foreign currency…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1CP

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