Chow Jewellery Group Limited (CJG) manufactures and sells platinum and gold jewellery products. CJG operates retail...
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Chow Jewellery Group Limited (CJG) manufactures and sells platinum and gold jewellery products. CJG operates retail networks in Hong Kong, Mainland China, Japan, and Kerea. CJG reports its financial statements in Hong Kong dollars (HKS), its functional and presentation currency. Part A (5 marks) On 3 October 2021, CIG purchased gold cuting equipment from Japan at JPV1,425,000, to be settled on 21 January 2022. CIG records such foreign currency transactions in HKS. The JPY and HKS spot rates are: 3 October 2021 31 December 2021 21 January 2022 HKS/JP¥ spot rates 14.25 14.76 14.60 Required: (Support with detailed calculations and round to the nearest HKS.) A. Show any exchange gain or loss for CIG on 31 December 2021, and 21 January 2022, respectively. (5 marks) Part B (7 marks) On I January 2021, CIG acquired a forcign operation in Singapore, JewDesign Singapore (JDS). JDS operates independently from CJG, and its functional currency is the Singapore dollar (SGS). Share Capital Retained Earnings SGS 1,200,000 140,000 JDS reported the following equity on 1 January 2021. JDS reports an SGS170,000 profit after tax during 2021, declares no dividends, and prepares the following Statement of Financial Position on 31 December 2021. Equity Share Capital | Assets and (Liabilities) Cash SGS 100,000 500,000 800,000 1,000,000 SGS 1,200,000 Accounts Receivable Retained Eamings 310,000 Intangible Assets Buildings Accounts Payable Bank Loans (110,000) (780,000) CJG translates JDS's Statement of Financial Position on 31 December 2021 to Hong Kong dollar (HKS) using the exchange rates below. SGS HKS 5.86 1 January 2021 31 December 2021 Average for 2021 5.78 5.80 Reguired: (Support with detailed caleulations.) B. Prepare the equity section of the translated Statement of Financial Position (in HKS) on 31 December 2021. (7 marks) Chow Jewellery Group Limited (CJG) manufactures and sells platinum and gold jewellery products. CJG operates retail networks in Hong Kong, Mainland China, Japan, and Kerea. CJG reports its financial statements in Hong Kong dollars (HKS), its functional and presentation currency. Part A (5 marks) On 3 October 2021, CIG purchased gold cuting equipment from Japan at JPV1,425,000, to be settled on 21 January 2022. CIG records such foreign currency transactions in HKS. The JPY and HKS spot rates are: 3 October 2021 31 December 2021 21 January 2022 HKS/JP¥ spot rates 14.25 14.76 14.60 Required: (Support with detailed calculations and round to the nearest HKS.) A. Show any exchange gain or loss for CIG on 31 December 2021, and 21 January 2022, respectively. (5 marks) Part B (7 marks) On I January 2021, CIG acquired a forcign operation in Singapore, JewDesign Singapore (JDS). JDS operates independently from CJG, and its functional currency is the Singapore dollar (SGS). Share Capital Retained Earnings SGS 1,200,000 140,000 JDS reported the following equity on 1 January 2021. JDS reports an SGS170,000 profit after tax during 2021, declares no dividends, and prepares the following Statement of Financial Position on 31 December 2021. Equity Share Capital | Assets and (Liabilities) Cash SGS 100,000 500,000 800,000 1,000,000 SGS 1,200,000 Accounts Receivable Retained Eamings 310,000 Intangible Assets Buildings Accounts Payable Bank Loans (110,000) (780,000) CJG translates JDS's Statement of Financial Position on 31 December 2021 to Hong Kong dollar (HKS) using the exchange rates below. SGS HKS 5.86 1 January 2021 31 December 2021 Average for 2021 5.78 5.80 Reguired: (Support with detailed caleulations.) B. Prepare the equity section of the translated Statement of Financial Position (in HKS) on 31 December 2021. (7 marks)
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Exchange gainloss for CJG on 31 December 2021 HK 99749932 Exchange gain... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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