On 1 July 2032, Kiwi Ltd, a company based in Auckland, New Zealand, acquired all of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 July 2032, Kiwi Ltd, a company based in Auckland, New Zealand, acquired all of the issued shares of Seattle Ltd, an American software development company based in Washington State. The trial balance (in US dollars) for Seattle Ltd for the last two years appears below: Y/E 30/06/33 Y/E 30/06/32 Deblt Debit Credit Credit 225,000 400,000 Cash 50,000 325,000 Accounts receivable 350,000 300,000 Inventory (Opening balance) 1,025,000 525,000 Land A 2,300,000 2,050,000 Equipment Accum. Depn. - Equipment 300,000 200,000 1,800,000 1,500,000 Plant 200,000 325,000 Accum. Depn. - Plant Trademarks 200,000 200,000 700,000 400,000 800,000 Accounts payable Dividends Payable 500,000 825,000 1,550,000 Provisions Loan Washington Bank Share capital 1,200,000 1,800,000 500,000 1,800,000 425,000 Retained earnings (Opening balance) Dividend paid 275,000 400,000 300,000 500,000 Dividend declared 4,000,000 3,250,000 1,475,000 75,000 87,500 Sales 2,100,000 100,000 125,000 100,000 712,500 Purchases Depreciation - Equipment Depreciation - Plant 587,500 Interest Other expenses Accounts payable Dividends Payable 800,000 500,000 700,000 400,000 Provisions 825,000 1,550,000 Loan - Washington Bank Share capital Retalned earnings (Opening balance) Dividend pald 1,200,000 1,800,000 1,800,000 500,000 425,000 300,000 275,000 Dividend declared 500,000 400,000 Sales 4,000,000 3,250,000 Purchases 2,100,000 1,475,000 100,000 75,000 Depreciation - Equipment Depreciation - Plant 125,000 87,500 100,000 Interest 712,500 587,500 Other expenses Income tax expense 362,500 325,000 10,250,000 10,250,000 8,525,000 8,525,000 Additional information Sales, purchases and expenses were occurred evenly throughout the period. 1. Closing inventory on 30 June 2033 was $700,000 and was acquired during June 2033 2. 3. Land was acquired by Seattle Ltd on 1 November 2032 for $500,000. New items of equipment were delivered and paid for on 1 April 2033 for $250,000. All equipment has a useful life of 5 years, with no residual value. Seattle Ltd use straight-line method for all equipment. 4. New items of plant were delivered and paid for on 31 December 2032 for $300,000. The plant have a useful life of 10 years, with no residual value. Seattle Ltd use straight-line method for all plant. 5. 6. The interim dividend was paid on 31 December 2032 7. The dividend payable was declared on 30 June 2033 Seattle Ltd borrowed US$1,200,000 on 1 September 2032 at an interest rate of 10% per annum, with interest payments at the end of each half- year (i.e. 31 December and 30 June). 8. The exchange rates for the financial year were as follows: US$ = NZ$ 01-Jul-2032 1.55 01-Nov-2032 31-Dec-2032 1.54 1.52 01-Apr-2033 1.53 30-Jun-2033 1.48 Average June 2033 Average for 2032-33 1.49 1.51 Required Prepare the following financial statements for Seattle Ltd in US Dollars for the financial year ended 30 June 2033: 1. A Statement of Profit or Loss Required 1. Prepare the following financial statements for Seattle Ltd in US Dollars for the financial year ended 30 June 2033: A Statement of Profit or Loss A Statement of Changes in Equity (column format) A Statement of Financial Position (current / non-current format) Note: Comparative data are not required 2. Assume that the functional currency for Seattle Ltd is the New Zealand dollar. Prepare a table in which you translate the financial data for Seattle Ltd to the functional currency. Clearly show all supporting calculations. Prepare the financial statements (as above) for Seattle Ltd using the functional currency of New Zealand dollars. 3. 4. Provide a table in which you determine the opening and closing net monetary assets and verify the foreign currency translation adjustment. On 1 July 2032, Kiwi Ltd, a company based in Auckland, New Zealand, acquired all of the issued shares of Seattle Ltd, an American software development company based in Washington State. The trial balance (in US dollars) for Seattle Ltd for the last two years appears below: Y/E 30/06/33 Y/E 30/06/32 Deblt Debit Credit Credit 225,000 400,000 Cash 50,000 325,000 Accounts receivable 350,000 300,000 Inventory (Opening balance) 1,025,000 525,000 Land A 2,300,000 2,050,000 Equipment Accum. Depn. - Equipment 300,000 200,000 1,800,000 1,500,000 Plant 200,000 325,000 Accum. Depn. - Plant Trademarks 200,000 200,000 700,000 400,000 800,000 Accounts payable Dividends Payable 500,000 825,000 1,550,000 Provisions Loan Washington Bank Share capital 1,200,000 1,800,000 500,000 1,800,000 425,000 Retained earnings (Opening balance) Dividend paid 275,000 400,000 300,000 500,000 Dividend declared 4,000,000 3,250,000 1,475,000 75,000 87,500 Sales 2,100,000 100,000 125,000 100,000 712,500 Purchases Depreciation - Equipment Depreciation - Plant 587,500 Interest Other expenses Accounts payable Dividends Payable 800,000 500,000 700,000 400,000 Provisions 825,000 1,550,000 Loan - Washington Bank Share capital Retalned earnings (Opening balance) Dividend pald 1,200,000 1,800,000 1,800,000 500,000 425,000 300,000 275,000 Dividend declared 500,000 400,000 Sales 4,000,000 3,250,000 Purchases 2,100,000 1,475,000 100,000 75,000 Depreciation - Equipment Depreciation - Plant 125,000 87,500 100,000 Interest 712,500 587,500 Other expenses Income tax expense 362,500 325,000 10,250,000 10,250,000 8,525,000 8,525,000 Additional information Sales, purchases and expenses were occurred evenly throughout the period. 1. Closing inventory on 30 June 2033 was $700,000 and was acquired during June 2033 2. 3. Land was acquired by Seattle Ltd on 1 November 2032 for $500,000. New items of equipment were delivered and paid for on 1 April 2033 for $250,000. All equipment has a useful life of 5 years, with no residual value. Seattle Ltd use straight-line method for all equipment. 4. New items of plant were delivered and paid for on 31 December 2032 for $300,000. The plant have a useful life of 10 years, with no residual value. Seattle Ltd use straight-line method for all plant. 5. 6. The interim dividend was paid on 31 December 2032 7. The dividend payable was declared on 30 June 2033 Seattle Ltd borrowed US$1,200,000 on 1 September 2032 at an interest rate of 10% per annum, with interest payments at the end of each half- year (i.e. 31 December and 30 June). 8. The exchange rates for the financial year were as follows: US$ = NZ$ 01-Jul-2032 1.55 01-Nov-2032 31-Dec-2032 1.54 1.52 01-Apr-2033 1.53 30-Jun-2033 1.48 Average June 2033 Average for 2032-33 1.49 1.51 Required Prepare the following financial statements for Seattle Ltd in US Dollars for the financial year ended 30 June 2033: 1. A Statement of Profit or Loss Required 1. Prepare the following financial statements for Seattle Ltd in US Dollars for the financial year ended 30 June 2033: A Statement of Profit or Loss A Statement of Changes in Equity (column format) A Statement of Financial Position (current / non-current format) Note: Comparative data are not required 2. Assume that the functional currency for Seattle Ltd is the New Zealand dollar. Prepare a table in which you translate the financial data for Seattle Ltd to the functional currency. Clearly show all supporting calculations. Prepare the financial statements (as above) for Seattle Ltd using the functional currency of New Zealand dollars. 3. 4. Provide a table in which you determine the opening and closing net monetary assets and verify the foreign currency translation adjustment.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these economics questions
-
On December 31,2012, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $1.8 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the...
-
On October 14, 2005, eBay acquired all of the outstanding securities of Skype Technologies S.A. ("Skype"), for a total initial consideration of approximately $2.593 billion, plus potential...
-
On January 2, 2014, Fisher Corporation acquired all of the voting common stock of Grant Corporation for its own stock worth $10,000,000, in a tax-free statutory merger. Grant's condensed balance...
-
PepsiCo, Inc.s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. The complete annual reports of PepsiCo and Coca-Cola,...
-
The Computer Anxiety Rating Scale (CARS) measures an individual's level of computer anxiety, on a scale from 20 (no anxiety) to 100 (highest level of anxiety). Researchers at Miami University...
-
Alternating-current (ac) voltages change rapidly between positive and negative values. If a voltage of 100 V changes to 200V, which is greater in absolute value?
-
Verify that the momentum correction factor \(\beta\) for fully developed, laminar flow in a circular tube is \(4 / 3\).
-
During the year ended December 31, 2011, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2010, the firm reported net income of $3,703,920 for 2010, with an average 268,400...
-
The following information is relevant for the year ended 31 December, 2022 Cash Account receivables Prepaid expenses Inventories Land Buildings 2022 2021 '000 54,000 '000 37,000 68,000 26,000 4,000...
-
A secret service courier carrying a briefcase with the codes to the USA's nuclear defense system has a mean delivery time of 62 minutes with a standard deviation of 13 minutes. What is the...
-
If xy + 2xy' + y =0 show that: xy^(n+2) +2(n+1)xy^(n+1) + (n +n+1)y^n = 0
-
Why should the performance of variance analyses be based on flexible budgets rather than static budgets?
-
Budgets provide a framework for evaluating performance and improving learning. Do you agree? Explain.
-
Only quantitative outcomes are relevant in capital budgeting analyses. Do you agree? Explain.
-
Give three examples of opportunity costs that typically are not recorded in accounting systems, although they are relevant when using the EOQ model in the presence of demand uncertainty.
-
Define strategy.
-
Use the Quadratic Formula to solve the equation x +22 = 10x x = reduced fractions.) (Separate answers by a comma. Write answers as integers or If the answer contains a radical use sqrt(5) to denote 5...
-
As indicated by mutual fund flows, investors tend to beat the market seek safety invest in last year's winner invest in last years loser
-
Under the current rate method, how are assets and liabilities that are stated in a foreign currency translated?
-
What is the rationale for the harmonization of international accounting standards?
-
The following events take place: 1. The Special Revenue Fund transfers $8,000 to the Internal Service Fund as a temporary loan. 2. The Internal Service Fund bills the Special Revenue Fund $20,000 for...
-
Consider a scenario where you negotiate with a company over the salary and perks being offered for a position. Create a class diagram for this using negotiation patterns as your base and draw a...
-
Consider a scenario where an online trade application is being developed. The two registered users can negotiate over the price of a product being traded. Create a class diagram for this application...
-
Explain main disadvantages of starting analysis from scratch for each project.
Study smarter with the SolutionInn App