On January 1, 20X1, Kiner Company formed a foreign subsidiary that issued all of its currently outstanding common stock on that date. Selected accounts from the balance sheets, all of which are shown in local currency units, are as follows:

Additional Information
1. Exchange rates are as follows:
LCU $
January 1, 20X1€“July 31, 20X1 2.0 = 1
August 1, 20X1€“October 31, 20X1 1.8 = 1
November 1, 20X1€“June 30, 20X2 1.7 = 1
July 1, 20X2€“December 31, 20X2 1.5 = 1
Average monthly rate for 20X1 1.9 = 1
Average monthly rate for 20X2 1.6 = 1
2. An analysis of the accounts receivable balance is as follows:

3. An analysis of inventories, for which the first-in, first-out inventory method is used, follows:

4. On January 1, 20X1, Kiner€™s foreign subsidiary purchased land for 24,000 LCU and plant and equipment for 140,000 LCU. On July 4, 20X2, additional equipment was purchased for 30,000 LCU. Plant and equipment is being depreciated on a straight-line basis over a 10-year period with no residual value. A full year€™s depreciation is taken in the year of purchase.
5. On January 15, 20X1, 7 percent bonds with a face value of 120,000 LCU were issued. These bonds mature on January 15, 20X7, and the interest is paid semiannually on July 15 and January
15. The first interest payment was made on July 15, 20X1.

Required
Prepare a schedule remeasuring the selected accounts into U.S. dollars for December 31, 20X1, and December 31, 20X2, respectively, assuming the U.S. dollar is the functional currency for the foreign subsidiary. The schedule should be prepared using the followingform:

Transcribed Image Text:

December 31 20X2 20X1 Accounts Receivable (net of ailowance for uncollectible accounts of 2,200 LCU on December 31, 20x2, and 2,000 LCU on December 31, 20X1) LCU 40,000 80,000 LCU 35,000 75,000 Inventories, at cost Property Plant, & Equipment (net of allowance for accumulated depreciation of 31,000 LCU on December 31 20X2, and 14,000 LCU on December 31, 20x1) 163,000 100,000 150,000 120,000 Long-Term Debt Common Stock, authorized 10,000 shares, par value 10 LCU per share; issued and outstanding, 5,000 shares on December 31, 20x2, and December 31, 20X1 50,000 50,000 20X2 20X1 Accounts Receivable Balance at beginning of year Sales 36,000 LCU per month in 20X2 and 31,000 LCU LCU 37,000 per month in 20X1) Collections Write-offs (May 20X2 and December 20X1) (423,600) 3,200) LCU 42,200 432,000 LCU 372,000 334,000) (1,000) Balance at end of year LCU 37,000 20X2 20X1 Allowance for Uncollectible Accounts: Balance at beginning of year Provision for uncollectible accounts LCU 2.000 3,400 LCU 3,000 3.200)(1.000) Write-offs (May 20X2 and December 20x1) Balance at end of year LCU 2.200 LCU 2000 20X2 20X1 Inventory at beginning of year Purchases (lune 20x2 and June 20X1) Goods available for sale Inventory at end of year Cost of goods sold 335,000 LCU410,000 (80,000) LCU330,000 LCU375,000 CU375,000 (75,000) LCU300,000