Question

On January 1, 20X6, Woods Ltd. formed a foreign subsidiary that issued all of its currently outstanding common shares on that date. Selected captions from the SFPs, all of which are shown in local currency units (LCU), are as follows:


Additional Information:
Exchange Rates
January 1, 20X6 to July 31, 20X6..................................................................... 2.1 LCU to $ 1
August 1, 20X6 to October 31, 20X6................................................................ 1.9 LCU to $ 1
November 1, 20X6 to June 30, 20X7................................................................ 1.8 LCU to $ 1
July 1, 20X7 to December 31, 20X7................................................................. 1.6 LCU to $ 1
Average rate for 20X6....................................................................................... 2.0 LCU to $ 1
Average rate for 20X7....................................................................................... 1.7 LCU to $ 1
Accounts Receivable— Analysis


On January 1, 20X6, Woods’ foreign subsidiary purchased land for 24,000 LCU and capital assets for 140,000 LCU. On July 1, 20X7, additional equipment was purchased for 30,000 LCU. Capital assets are being depreciated on a straight- line basis over a 10- year period with no salvage value. A full year’s depreciation is taken in the year of purchase.
On January 15, 20X6, 7% bonds with a face value of 120,000 LCU were sold. The bonds pay interest on July 15 and January 15 each year. The first payment was made on July 15, 20X6.

Required
Prepare a schedule translating the selected captions above into Canadian dollars at December 31, 20X6, and December 31, 20X7, using the temporal method. Show supporting computations in goodform.


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  • CreatedMarch 13, 2015
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