SCh10 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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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!
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 10-31 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!
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Given P10-31: Kingsfield investment in subsidiary (in Kumquats) KQ 10,000 Expended to acquire equipment KQ 3,000 Currency exchange (KQ 1): January 1, 2011 $1.71 April 1, 2011 $1.59 June 1, 2011 $1.66 Weighted average - 2011 $1.64 December 31, 2011 $1.62 Subsidiary trial balance, December 31, 2011 Debits Credits Cash KQ 8,000 Accounts receivable 9,000
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SCh10 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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