2011 week 10 FOREIGN CURRENCY TRANSACTIONS

2 3 4 the capital assets are being written off over

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Unformatted text preview: ditional Information: 1. 2 3. 4. The capital assets are being written off over 10 years on a straight-line basis. Goodwill is tested annually for impairment. Impairment losses are as follows: 20x4 $30,000 20x5 20,000 The bonds have ten years remaining. During 20x5, Pantry declared and paid $50,000 of dividends. Santry declared and paid $40,000 of dividends. © CMA Ontario, 2011 14 of 20 CMA Accelerated Program - 2011/2012 Lecture Student Weekly File - Week 10 Financial statements of Pantry Ltd. and Santry Ltd. as at December 31, 20x5 are: Statement of Financial Positions December 31, 20x5 Cash Accounts receivable Inventory Capital assets – net Investment in subsidiary (cost) Current liabilities Bonds payable at 12% interest Common shares Retained earnings Pantry Ltd $ 145,500 300,000 609,500 1,000,000 506,100 $2,561,100 $ 100,000 400,000 2,061,100 $2,561,100 Santry Ltd $ 85,000 200,000 400,000 800,000 $1,485,000 $ 131,000 264,000 375,000 715,000 $1,485,000 Income Statements Year Ended December 31, 20x5 Sales and other revenues Cost of goods sold Depreciation Interest expense Other expenses Income tax expense Net income Pantry Ltd $ 1,200,000 (800,000) (80,000) (107,000) (85,200) $ 127,800 Santry Ltd $ 925,000 (500,000) (70,000) (42,000) (80,000) (69,900) $ 163,100 Required: 1. 2. 3. 4. Prepare a consolidated statement of income and retained earnings for the year ended December 31, 20x5. Provide a proof of the ending Consolidated Retained balance. Prepare the consolidated Statement of Financial Position as at December 31, 20x5. Provide a reconciliation of the NonControlling Interest Liability account from the opening balance to the ending balance. © CMA Ontario, 2011 15 of 20 CMA Accelerated Program - 2011/2012 Lecture Student Weekly File - Week 10 Problem 14 – Foreign Currency Transactions The Charlie Company purchased inventory from a U.S. company on April 30, 20x8, for $US80,000. The amount is payable on July 31, 20x8, in US dollars. Charlie Company has a June...
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This note was uploaded on 01/07/2014 for the course ACCOUNTING 346 taught by Professor William during the Fall '12 term at DeVry Chicago.

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