On January 1, 2016, Marx Corporation, a U.S. based company, purchased Tiamo Company, located in Mexico....

 

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On January 1, 2016, Marx Corporation, a U.S. based company, purchased Tiamo Company, located in Mexico. Tiamo Company's functional currency is not Mexican Pesos. Direct exchange rates for the Mexican Pesos are: January 1, 2016 December 31, 2016 Average for 2016 $.6923 .6184 .6501 Dividend declaration date .6755 a) Complete the translation schedule by filling in the appropriate rates and U.S. dollar amounts. U.S. Dollars Combined Income Statement and Retained Earnings Revenues Operating Expenses: Depreciation Operating Expenses: All Other Translation Gain (Loss) Net Income Retained Earnings, Jan 1 Dividends Retained Earnings, Dec 31 Balance Sheet Cash and Receivables Property, Plant & Equipment Total Assets Accounts Payable Common Stock Retained Earnings Total Liab& Equity Mexican Pesos 30,000 1,000 10,000 19,000 7,000 8,000 18,000 23,000 19,000 42,000 10,500 13,500 18,000 42,000 Rate ' b) Use the back of this page to prepare a schedule to verify the translation gain (loss). Tiamo Company issued no stock during 2016. Hint: Tiamo Company's net monetary asset position (cash and receivables less accounts payable) on January 1, 2016, was 500 pesos. On January 1, 2016, Marx Corporation, a U.S. based company, purchased Tiamo Company, located in Mexico. Tiamo Company's functional currency is not Mexican Pesos. Direct exchange rates for the Mexican Pesos are: January 1, 2016 December 31, 2016 Average for 2016 $.6923 .6184 .6501 Dividend declaration date .6755 a) Complete the translation schedule by filling in the appropriate rates and U.S. dollar amounts. U.S. Dollars Combined Income Statement and Retained Earnings Revenues Operating Expenses: Depreciation Operating Expenses: All Other Translation Gain (Loss) Net Income Retained Earnings, Jan 1 Dividends Retained Earnings, Dec 31 Balance Sheet Cash and Receivables Property, Plant & Equipment Total Assets Accounts Payable Common Stock Retained Earnings Total Liab& Equity Mexican Pesos 30,000 1,000 10,000 19,000 7,000 8,000 18,000 23,000 19,000 42,000 10,500 13,500 18,000 42,000 Rate ' b) Use the back of this page to prepare a schedule to verify the translation gain (loss). Tiamo Company issued no stock during 2016. Hint: Tiamo Company's net monetary asset position (cash and receivables less accounts payable) on January 1, 2016, was 500 pesos.