ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 10, Problem 29P
a.
To determine
What is the translation adjustment for subsidiary in 2017 when functional currency is US Dollar?
b.
To determine
What is the re-measurement gainer loss for 2017 when US Dollar subsidiaries functional currency.
c.
To determine
What is the translated value of land of land account on December 31, 2017. What is the measured value of land in balance sheet?
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Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three assets: cash of 24,600 dinars,
accounts receivable of 81,300 dinars, and land that cost 213,000 dinars when acquired on April 1, 2019. On January 1, 2020, Zugar has
a 163,000 dinar note payable, and no other liabilities. On May 1, 2020, Zugar renders services to a customer for 133,000 dinars, which
was immediately paid in cash. On June 1, 2020, Zugar incurred a 113,000 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
January 1, 2020
May 1, 2020
June 1, 2020
December 31, 2020
Positive
1 dinar
$0.46 =
0.49
1
0.50
1
0.52 = 1
0.54
1
a.
b. Remeasurement gain
C.
Translated value of land
Remeasured value of land
|| || ||
a. 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…
Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 20,000 dinars, accounts receivable of 80,000 dinars, and land that cost 200,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 150,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 120,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a 100,000 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, 2016 . . . . .. . $0.33 = 1 dinar January 1, 2017 . . . . .. . . 0.36 = 1 May 1, 2017 . . . . . . . . .. . . 0.37 = 1 June 1, 2017 . . . . . .. . . . . 0.39 = 1 December 31, 2017 . . . . . 0.41 = 1
a. 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…
Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three assets: cash of 20,000 dinars,
accounts receivable of 80,000 dinars, and land that cost 200,000 dinars when acquired on April 1, 2019. On January 1, 2020, Zugar
has a 150,000 dinar note payable, and no other liabilities. On May 1, 2020, Zugar renders services to a customer for 120,000 dinars,
which was immediately paid in cash. On June 1, 2020, Zugar incurred a 100,000 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
January 1, 2020
May 1, 2020
June 1, 2020
December 31, 2020
a.
b.
Positive
$0.33
0.36 = 1
0.37 = 1
0.39 = 1
0.41
1
a.
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 adjustment for this…
Chapter 10 Solutions
ADVANCED ACCOUNTING-LL
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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- Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three assets: cash of 20,000 dinars, accounts receivable of 80,000 dinars, and land that cost 200,000 dinars when acquired on April 1, 2019. On January 1, 2020, Zugar has a 150,000 dinar note payable, and no other liabilities. On May 1, 2020, Zugar renders services to a customer for 120,000 dinars, which was immediately paid in cash. On June 1, 2020, Zugar incurred a 100,000 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 $0.33 = 1 dinar January 1, 2020 0.36 = 1 May 1, 2020 0.37 = 1 June 1, 2020 0.39 = 1 December 31, 2020 0.41 = 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…arrow_forwardGold Corporation began its operation at the beginning of 2018. Its functional currency is the US dollar and its presentation currency is the Philippine peso. Gold Corporation had cash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginning of February, Gold Corporation purchased land for $80,000 and building for $55,000 in exchange for a three-year note payable. Revenue for 2018 was $355,000. Operating expenses, including depreciation of $5,000, were $250,000. The statement of financial position for Gold Corporation in US dollar at the end of 2018 is as follows: Gold Company Balance Sheet December 31, 2018 Assets US Dollars Cash 105,000 170,000 100,000 50,000 425.000 Accounts receivable Land Building, net Total assets Liabilities and Shareholders' Equity Accounts payable Long-term debt Share capital Retained earnings Total liabilities and stockholders' equity 10,000 155,000 225,000 35.000 425.000 Additional land was purchased in March in exchange for a three-year…arrow_forwardZugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2024 with three assets: cash of 27,800 dinars, accounts receivable of 81,900 dinars, and land that cost 219,000 dinars when acquired on April 1, 2023. On January 1, 2024, Zugar has a 169,000 dinar note payable, and no other liabilities. On May 1, 2024, Zugar renders services to a customer for 139,000 dinars, which was immediately paid in cash. On June 1, 2024, Zugar incurred a 119,000 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, 2023 January 1, 2024 May 1, 2024 June 1, 2024 December 31, 2024 Required: $ 0.52 = 1 dinar 0.55 = 1 dinar 0.561 dinar 0.58 1 dinar 0.60 = 1 dinar a. 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…arrow_forward
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