GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
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Chapter 10, Problem 23P
The following accounts are denominated in rubles as of December 31, 2017. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2012. The buildings were acquired in 2013 and the patents in 2015.
| Translation | Remeasurement | |
| Accounts payable | ||
| Accounts receivable | ||
| Advertising expense | ||
| Amortization expense (patents) | ||
| Buildings | ||
| Cash | ||
| Common stock | ||
| Depreciation expense | ||
| Dividends (10/1/17) | ||
| Notes payable—due in 2020 | ||
| Patents (net) | ||
| Salary expense | ||
| Sales |
Exchange rates for 1 ruble are as follows:
| 2012 | 1 ruble = $0.28 |
| 2013 | 1 = 0.26 |
| 2015 | 1 = 0.25 |
| January 1, 2017 | 1 = 0.24 |
| April 1, 2017 | 1 = 0.23 |
| July 1, 2017 | 1 = 0.22 |
| October 1, 2017 | 1 = 0.20 |
| December 31, 2017 | 1 = 0.16 |
| Average for 2017 | 1 = 0.19 |
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The following accounts are denominated in rubles as of December 31, 2020. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. The company was started in 2015. The buildings were acquired in 2016 and the patents in 2018.
Exchange rates for 1 ruble are as follows:
2015
1 ruble
=
$
0.28
2016
1
=
0.26
2018
1
=
0.25
January 1, 2020
1
=
0.24
April 1, 2020
1
=
0.23
July 1, 2020
1
=
0.22
October 1, 2020
1
=
0.20
December 31, 2020
1
=
0.16
Average for 2020
1
=
0.19
ASSUME THAT THE U.S. DOLLAR IS THE FUNCTIONAL CURRENCY.
Ruthie Inc. had a debit adjustment of $7900 for the year ended December 31, 2019, from restating its foreign
subsidiary's accounts from their local currency units into U.S. dollars.
Additionally, Ruthie had a receivable from a foreign customer. It is denominated in the customer's local currency. On
December 31, 2018, this receivable for 300,000 local currency units (LCU) was correctly included in Ruthie's balance
sheet at $124200. When the receivable was collected on February 15, 2019, the U.S. dollar-equivalent was $122200.
In Ruthie's 2019 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in
computing net income?
BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF
$1,000.
IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000)
Your Answer:
The following accounts are denominated in rubles as of December 31, 2020. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2015. The buildings were acquired in 2016 and the patents in 2018.
Exchange rates for 1 ruble are as follows:
2015
1 ruble
=
$
0.28
2016
1
=
0.26
2018
1
=
0.25
January 1, 2020
1
=
0.24
April 1, 2020
1
=
0.23
July 1, 2020
1
=
0.22
October 1, 2020
1
=
0.20
December 31, 2020
1
=
0.16
Average for 2020
1
=
0.19
Chapter 10 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 10 - Prob. 1QCh. 10 - What causes balance sheet (or translation)...Ch. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Prob. 9QCh. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Which translation method does U.S. GAAP require...Ch. 10 - Prob. 13QCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - What amount does Newberrys consolidated income...Ch. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - A foreign subsidiarys functional currency is its...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - The following accounts are denominated in rubles...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Sullivans Island Company began operating a...Ch. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - The following account balances are for the Agee...Ch. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - Prob. 1DYSCh. 10 - RESEARCH CASE 2FOREIGN CURRENCY TRANSLATION...Ch. 10 - Prob. 3DYSCh. 10 - Prob. 4DYSCh. 10 - Prob. 5DYS
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