LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
13th Edition
ISBN: 9781259444951
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 10, Problem 34P
The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).
| January 1, 2017 | December 31, 2017 | |
| Accounts payable | (15,000) | (25,000) |
| Accounts receivable | 54,000 | 104,000 |
| Accumulated |
(45,000) | (50,000) |
| Accumulated depreciation—equipment | –0– | (7,500) |
| Bonds payable—due 2020 | (64,000) | (64,000) |
| Buildings | 134,000 | 105,000 |
| Cash | 60,000 | 10,500 |
| Common stock | (69,000) | (82,000) |
| Depreciation expense | –0– | 40,000 |
| Dividends (10/1/17) | –0– | 57,000 |
| Equipment | –0– | 64,000 |
| Gain on sale of building | –0– | (8,500) |
| Rent expense | –0– | 21,500 |
| (55,000) | (55,000) | |
| Salary expense | –0– | 45,000 |
| Sales | –0– | (162,000) |
| Utilities expense | –0– | 7,000 |
Additional Information
- Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.
- Agee purchased buildings in 2011 and sold one building with a book value of Kr 1,500 on July 1 of the current year.
- Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $2.90 |
| 2011 | 2.70 |
| January 1, 2017 | 3.00 |
| April 1, 2017 | 3.10 |
| July 1, 2017 | 3.30 |
| October 1, 2017 | 3.40 |
| December 31, 2017 | 3.50 |
| Average for 2017 | 3.20 |
- a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar–translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.
- b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar–translated balance sheet reported retained earnings of $162,250 and a cumulative translation adjustment of $9,650 (credit balance).
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Chapter 10 Solutions
LooseLeaf for Advanced Accounting (Irwin Accounting) - Standalone book
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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