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Complete the following worksheet, assuming that on January 1, 20X1, Weiss Corporation purchased Rock Corporation. Rock's functional currency is the...

Complete the following worksheet, assuming that on January 1, 20X1, Weiss Corporation
purchased Rock Corporation. Rock's functional currency is the FC.

Date Relevant Exchange Rates
January 1, 20X1 1 FC = $0.25
January 1, 20X4 1 FC = $0.30
March 31, 20X4 1 FC = $0.40
December 31, 20X4 1 FC = $0.50
Weighted average 20X4 1 FC = $0.37

Rock Corporation
For the Year Ended December 31, 20X4

FC Rate Dollars
Income Statement
Net sales FC 2,000,000 $
Costs and expenses 800,000
Net income FC 1,200,000 $

Statement of Retained Earnings
Retained earnings, beginning of year FC 6,500,000 $1,300,000
Net income 1,200,000
Subtotal FC 7,700,000 $
Dividends (declared on March 31) 1,000,000
Retained earnings, end of year FC 6,700,000 $

Balance Sheet
Assets:
Current assets FC 3,000,000 $
Plant assets (net)
(purchased January 1, 20X1) 55,000,000
Total assets FC 58,000,000 $

Liabilities and Stockholders' Equity:
Current liabilities FC 4,000,000 $
Long-term debt 25,000,000
Common stock (issued January 1, 20X1) 5,000,000
Paid-in capital in excess of par 17,300,000
Retained earnings 6,700,000
Cumulative translation adjustments
Total liabilities and stockholders' equity FC 58,000,000 $








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8438184.xls

Sheet1
Complete the following worksheet, assuming that on January 1, 20X1, Weiss Corporation purchased Rock Corporation. Rock's functional currency is the FC.
Date
January 1, 20X1
January 1, 20X4...

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