ACC440_COOKE_WEEK3 - Name: Keyyna Cooke Instructor: Vikix...

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Name: Keyyna Cooke Instructor: Vikix Inc. Trial Balance Translation December 31, 20X5 Exchange Debits: Kroner Rate U.S. Dollars Cash NKr 150,000 0.21 $31,500 Accounts Receivable (net) 200,000 0.21 42,000 Inventory 270,000 0.21 56,700 Plant and Equipment 600,000 0.21 126,000 Cost of Goods Sold 410,000 0.20 82,000 Operating Expense 100,000 0.20 20,000 Depreciation Expense 50,000 0.20 10,000 Dividends Paid 40,000 0.19 7,600 Total Debits NKr 1,820,000 $375,800 Credits: Accumulated Depreciation NKr 150,000 0.21 $31,500 Accounts Payable 90,000 0.21 18,900 Notes Payable 190,000 0.21 39,900 Common Stock 450,000 0.18 81,000 Retained Earnings 250,000 0.18 45,000 Sales 690,000 0.20 138,000 Accumulated Other Comprehensive Income — Translation Adjustment 21,500 Total Credits NKr 1,820,000 $375,800
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Requirements for Assignment a. Using the information in the right hand column, complete the schedule above, translating the trial balance from Norwegian Kroner into U.S. Dollars. Assume the Kroner is the functional currency. Only the green cells are active and need to be completed. b. Assume that Taft uses the basic equity method. Record all journal entries that relate to its investment in the Norwegian subsidiary during 20X5. Provide the necessary documentation and support for the amounts in the journal entries, including a schedule of the translation adjustment related to the differential. c. Prepare a schedule that determines Taft's consolidated comprehensive income for 20X5.
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d. Compute Taft's total consolidated stockholders' equity at December 31, 20X5
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ACC 440 Instructions
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This note was uploaded on 03/22/2010 for the course ACC ACC448 taught by Professor Dell during the Spring '10 term at University of Phoenix.

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ACC440_COOKE_WEEK3 - Name: Keyyna Cooke Instructor: Vikix...

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