ts are listed below for a foreign subsidiary that maintains its books in its local currency. The equity interest in the subsidiary was acquired in a purchase transaction. In the space provided, indicate the exchange rate that would be used to translate the accounts into dollars assuming that the functional currency was identified (a) as the U.S. dollar and (b) as the foreign entity’s local currency. Exchange Rate if the Functional Currency Is: Account U.S. Dollar Local Currency Cash Accounts receivable Inventory carried at cost Inventory carried at market Prepaid rent
ts are listed below for a foreign subsidiary that maintains its books in its local currency. The equity interest in the subsidiary was acquired in a purchase transaction. In the space provided, indicate the exchange rate that would be used to translate the accounts into dollars assuming that the functional currency was identified (a) as the U.S. dollar and (b) as the foreign entity’s local currency. Exchange Rate if the Functional Currency Is: Account U.S. Dollar Local Currency Cash Accounts receivable Inventory carried at cost Inventory carried at market Prepaid rent
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter24: Recording International And Internet Sales
Section: Chapter Questions
Problem 1CP
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Accounts are listed below for a foreign subsidiary that maintains its books in its local currency. The equity interest in the subsidiary was acquired in a purchase transaction. In the space provided, indicate the exchange rate that would be used to translate the accounts into dollars assuming that the functional currency was identified (a) as the U.S. dollar and (b) as the foreign entity’s local currency.
| Exchange Rate if the Functional Currency Is: |
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| Account | U.S. Dollar | Local Currency | ||
| Cash |
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| Inventory carried at cost |
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| Inventory carried at market |
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| Prepaid rent |
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| Property, plant, and equipment |
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| Accounts payable |
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| Bonds payable |
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| Unamortized premium on bonds payable |
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| Common stock |
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| Sales |
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| Cost of goods sold |
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