Chapter_10_XLSol

# Chapter_10_XLSol - Student Name: Instructor Class:...

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Unformatted text preview: Student Name: Instructor Class: McGraw-Hill/Irwin Problem 10-31 a. Translation of Kingston Subsidiary Trial Balance Debits Credits Cash Correct! - \$12,960 Accounts receivable Correct! - 14,580 Equipment Correct! - 4,860 Accumulated depreciation \$972 - Correct! Land Correct! - 8,100 Accounts payable 4,860 - Correct! Notes payable 8,100 - Correct! Common stock 17,100 - Correct! Dividends paid Correct! - 6,640 Sales 41,000 - Correct! Salary expense Correct! - 8,200 Depreciation expense Correct! - 984 Miscellaneous expenses Correct! - 14,760 Correct! - \$71,084 Translation adjustment Correct! - 948 Totals Correct! - \$72,032 \$72,032 - Correct! Calculation of Translation Adjustment Exchange KQ Rate Dollar Net assets, 1/1- - - Correct! Increase in net assets: Common stock issued 10,000 1.71 \$17,100 - Correct! Sales 25,000 1.64 41,000 - Correct! Decrease in net assets: Dividends paid (4,000) 1.66 (6,640) - Correct! Salary expense (5,000) 1.64 (8,200) - Correct! Depreciation expense (600) 1.64 (984) - Correct! Miscellaneous expense (9,000) 1.64 (14,760) - Correct! Net assets, 12/31 16,400 \$27,516 - Correct! Net assets, 12/31 at current 16,400 1.62 26,568 - Correct! exchange rate Translation adjustment \$948 - Correct! b. Remeasurement of Kingston Subsidiary Trial Balance Debits Credits Cash Correct! - \$12,960 Accounts receivable Correct! - 14,580 Equipment Correct! - 5,130 Accumulated depreciation \$1,026 - Correct! Land Correct! - 7,950 Accounts payable 4,860 - Correct! Notes payable 8,100 - Correct! Common stock 17,100 - Correct! Dividends paid Correct! - 6,640 Sales 41,000 - Correct! Salary expense Correct! - 8,200 Depreciation expense Correct! - 1,026 Miscellaneous expenses Correct! - 14,760 Correct! - \$71,246 Remeasurement loss Correct! - 840 Totals Correct! - \$72,086 \$72,086 - Correct! Calculation of Remeasurement Loss Exchange KQ Rate Dollar Net monetary assets, 1/1- - - Correct! Increase in net monetary assets: Common stock issued 10,000 1.71 \$17,100 - Correct! Sales 25,000 1.64 41,000 - Correct! Decrease in net monetary assets: Acquired equipment (3,000) 1.71 (5,130) - Correct! Acquired land (5,000) 1.59 (7,950) - Correct! Dividends paid (4,000) 1.66 (6,640) - Correct! Salary expense (5,000) 1.64 (8,200) - Correct! Miscellaneous expense (9,000) 1.64 (14,760) - Correct! Net monetary assets, 12/31 9,000 \$15,420 - Correct! Net monetary assets, 12/31 9,000 1.62 14,580 - Correct! at current exchange rate Remeasurement loss \$840 - Correct! Given P10-31: Kingsfield investment in subsidiary (in Kumquats) 10,000 KQ Expended to acquire equipment 3,000 KQ Currency exchange (KQ 1): January 1, 2009 \$1.71 April 1, 2009 \$1.59 June 1, 2009 \$1.66 Weighted average - 2009 \$1.64 December 31, 2009 \$1.62 Subsidiary trial balance, December 31, 2009 Debits Credits Cash KQ 8,000 Accounts receivable 9,000 Equipment 3,000 Accumulated depreciation KQ 600 Land 5,000 Accounts payable...
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## Chapter_10_XLSol - Student Name: Instructor Class:...

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