{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 10-6 - CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Answers to Problems 23.(10 minutes) (Determine translation and remeasurement rates) Translation Remeasurement Accounts payable $.16 C $.16 C Accounts receivable $.16 C $.16 C Accumulated depreciation $.16 C $.26 H Advertising expense $.19 A $.19 A Amortization expense $.19 A $.25 H Buildings $.16 C $.26 H Cash $.16 C $.16 C Common stock $.28 H $.28 H Depreciation expense $.19 A $.26 H Dividends paid (10/1) $.20 H $.20 H Notes payable $.16 C $.16 C Patents (net) $.16 C $.25 H Salary expense $.19 A $.19 A Sales $.19 A $.19 A * C = current rate, H = historical rate, A = average rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
24. (20 minutes) (Calculate translation adjustment and remeasurement gain/loss and explain their economic relevance) The translation adjustment and remeasurement gain/loss can be determined as the plug figure that keeps the dollar balance sheet in balance: Translation Remeasurement CHF Rate US$ Rate US$ Cash ............................ 500,000 $.75 C 375,000 $.75 C 375,000 Inventory ..................... 1,000,000 $.75 C 750,000 $.70 H 700,000 Fixed assets ............... 3,000,000 $.75 C 2,250,000 $.70 H 2,100,000 Total assets ............... 4,500,000 3,375,000 3,175,000 Notes payable .......... 800,000 $.75 C 600,000 $.75 C 600,000 Owners equity ........................... 3,700,000 $.70 H 2,590,000 $.70 H 2,590,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}