1231 Cumulative translation adjustment 54960 2 A Workpaper to Translate Account

1231 cumulative translation adjustment 54960 2 a

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12/31 Cumulative translation adjustment$ 54,9602. A.Workpaper to Translate Account Balances of Foreign SubsidiaryTemporal MethodAdjustedTrial BalanceFCTranslationRateAdjustedTrial Balance$Balance SheetCash30,000C1.1762$ 35,286Accounts receivable50,000C1.176258,810Inventories (FIFO) (last quarter of 2012)20,000C1.166723,334Land100,000H1.0451104,510Buildings (net)200,000H1.0451209,020Equipment (net)180,000H1.0451188,100Total580,000$619,060Accounts payable30,000C1.1762$ 35,286Bonds payable140,000C1.1762164,668Common stock200,000qcq1.0451209,020Additional paid-in capital50,000qcq1.045152,255Retained earnings160,000plug157,831Total580,000$619,060Consolidated Statement of Income and RESales280,000A1.1106$310,968Cost of goods sold(100,000)*(108,956)Depreciation expense( 20,000)H1.0451( 20,902)Other expenses( 80,000)A1.1106( 88,848)Income tax expense( 30,000)A1.1106( 33,318)Translation gain or loss________plug( 11,590)Net income50,000$ 47,3541/1 Retained earnings 150,0001/11.0451156,765200,000$204,119Less: Dividends declared( 40,000)decl1.1572(46,288)12/31 Retained earnings (from above)160,000$157,83113-14
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CHAPTER 13Translation of Financial Statements for Foreign AffiliatesSchedule I – Translation of Cost of Goods Sold FCExchange RateUS$Beginning inventory (date of acquisition)15,0001.0451$ 15,677Add: Purchases105,000A1.1106116,613120,000$132,290Less: Ending inventory (this year’s rate)20,0001.166723,334Cost of goods sold *100,000$108,95613-15
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