Number 85 answer c reclassification from temporarily

Info icon This preview shows pages 21–25. Sign up to view the full content.

View Full Document Right Arrow Icon
Number 85 Answer C Reclassification from temporarily restricted net assets to unrestricted net assets during 2021 20,000 Depreciation expense of computer during 2021 (20,000/5 years) ( 4,000) Increase in unrestricted net asset during 2021 16,000 Number 86 Answer B All cash receipts with donor stipulation shall be classified in the Statement of Cash Flows as financing activities Cash donation to be invested indefinitely 1,000,000 Dividend received from investment for acquisition of computers _100,000 Cash receipts from financing activities 1,100,000
Image of page 21

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

View Full Document Right Arrow Icon
Number 87 Answer C Cash disbursements for investing activities 20,000 All cash disbursement for acquisition of noncurrent asset shall be classified in the Statement of Cash Flows as investing activities. Cash paid for computer 20,000 88. D 89. C 90. A 91. A 92. A Number 93 Answer C 1. To record the sale on October 15, 2018 in US dollar: Accounts receivable 100,000 Sales 100,000 2. To record the remittance on November 16, 2018: Cash 105,000 Accounts receivable 100,000 Foreign exchange gain 5,000 Page 18 Number 94 Answer D September 1, 2018 (250,000 x $.20) 50,000 December 31, 2018 (250,000 x $.19) 47,500 Foreign exchange loss 2018 ( 2,500 ) December 31, 31, 2018 47,500 February 1, 2019 (250,000 x $.22) 55,000 Foreign exchange gain 2019 7,500 Number 95 Answer B Foreign currency payable – November 30, 2018 is (300,000 x $1.65) 495,000 Foreign currency payable – December 31, 2018 (300,000 x $1.62) 486,000 Foreign currency gain __9,000 Number 96 Answer D Foreign currency payable – January 20, 2018 90,000 Foreign currency payment – March 20, 2018 96,000 Foreign currency loss 6,000
Image of page 22
Foreign currency note payable 500,000 Dollar equivalent on December 31, 2018 520,000 Foreign currency loss 20,000 Foreign currency interest payable December 31, 2018 (500,000 x 10% x 6/12) 25,000 Dollar equivalent on December 31, 2018 26,000 Foreign currency loss 1,000 Total foreign currency loss for 2018 (6,000 + 20,000 +1,000) 27,000 Number 97 Answer C Royalties for 2019 in Canadian dollars (10% x 50,000) 5,000 Multiply by spot rate – December 31, 2019 __.89 Royalties payable – December 31, 2019 4,450 Number 98 Answer A Sales revenue at transaction rate on December 1, 2020 ($1,500 x P39) 58,500 Nonmonetary item such as sales shall be translated at transaction rate. Number 99 Answer C Carrying amount of accounts receivable at closing rate on December 1, 2020 ($1,500 x P45) 67,500 Monetary item such as accounts receivable shall be translated at closing rate. Page 19 Number 100 Answer D Carrying amount of accounts payable at closing rate on December 31, 2020 ($1,000 x P47) 47,000 Monetary item such as accounts payable shall be translated at closing rate. Number 101 Answer A Accounts receivable – December 1, 2020 ($1,500 x 39) 58,500 Accounts receivable – December 31, 2020 ($1,500,000 x 45) 67,500 Foreign currency gain 9,000 Accounts payable – November 1, 2020 ($1,000 x 42) 42,000 Accounts payable – December 31, 2020 ($1,000 x 47) 47,000 Foreign currency loss ( 5,000) Net foreign currency gain (9,000 – 5,000) 4,000
Image of page 23

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

View Full Document Right Arrow Icon
Number 102 Answer A Ordinary share capital 5,000 Preference share capital 8,000 Retained earnings _7,000 Net assets in US dollar – December 31, 2020 20,000 Net income for 2020 ( 1,000) Dividends declared on December 1, 2020 __200 Net assets – December 31, 2019 19,200 Number 103 Answer A Net assets at December 31, 2019 rate ($19,200 x P43) 825,600 Net income during 2020 at average rate ($1,000 x P44) 44,000 Dividends declared during 2020 at transaction rate on December 1, 2020 ($200 x P41) ( 8,200) Net assets at December 31, 2020 at rolled amount 861,400 Net assets at December 31, 2020 at December 31,2020 rate ($20,000 x 45) (900,000) Translation gain during 2020 in OCI 38,600 Number 104 Answer B Retained earnings on December 31, 2019 at translated amount 300,000
Image of page 24
Image of page 25
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern