On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with...

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On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $130,500. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E). respectively. Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Total liabilities and equities Cayce Corporation $ 209,600 (98,600) (20,200) (7,600) (22,800) 15,400 Simbel Company E 827,700 (434,500) (76,400) (47,200) (60,800) 8 e $ 75,800 $ 324,000 75,800 (30,000) $ 369,800 $ 111,400 98,600 30,000 130,500 417,200 $ 787,700 $ 63,200 141,500 126,000 87,200 369,800 36,000 E 244,800 E 137,800 244,800 (56,000) E 326,600 E 152,600 310,200 B 461,000 E 923,800 E 55,800 141,800 246,000 153,600 326,600 $ 787,700 E 923,800 Additional Information During 2019, the first year of joint operation, Simbel reported income of E 169,000 earned evenly throughout the year. Simbel declared a dividend of E 31,200 to Cayce on June 1 of that year. Simbel also declared the 2020 dividend on June 1. On December 9, 2020, Simbel classified a E 10,600 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2021. The exchange rates for 1E are as follows: January 1, 2019 $ 0.300 June 1, 2019 0.290 Weighted average rate for 2019 0.288 December 31, 2019 0.280 June 1, 2020 0.275 October 1, 2020 0.273 Weighted average rate for 2020 0.274 December 31, 2020 0.270 Translate Simbel's 2020 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary's functional currency. Translation Consolidation Worksheet Worksheet Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Input all amounts as positive values.) CAYCE CORPORATION Sales Cost of goods sold Salary expense Account Rent expense Other expenses Dividend income-from Simbel Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities Consolidation Worksheet Consolidation Entries Consolidated Balances Cayce Dollars Simbel Debit Credit Dollars Dollars On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $130,500. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E). respectively. Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Total liabilities and equities Cayce Corporation $ 209,600 (98,600) (20,200) (7,600) (22,800) 15,400 Simbel Company E 827,700 (434,500) (76,400) (47,200) (60,800) 8 e $ 75,800 $ 324,000 75,800 (30,000) $ 369,800 $ 111,400 98,600 30,000 130,500 417,200 $ 787,700 $ 63,200 141,500 126,000 87,200 369,800 36,000 E 244,800 E 137,800 244,800 (56,000) E 326,600 E 152,600 310,200 B 461,000 E 923,800 E 55,800 141,800 246,000 153,600 326,600 $ 787,700 E 923,800 Additional Information During 2019, the first year of joint operation, Simbel reported income of E 169,000 earned evenly throughout the year. Simbel declared a dividend of E 31,200 to Cayce on June 1 of that year. Simbel also declared the 2020 dividend on June 1. On December 9, 2020, Simbel classified a E 10,600 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2021. The exchange rates for 1E are as follows: January 1, 2019 $ 0.300 June 1, 2019 0.290 Weighted average rate for 2019 0.288 December 31, 2019 0.280 June 1, 2020 0.275 October 1, 2020 0.273 Weighted average rate for 2020 0.274 December 31, 2020 0.270 Translate Simbel's 2020 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary's functional currency. Translation Consolidation Worksheet Worksheet Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Input all amounts as positive values.) CAYCE CORPORATION Sales Cost of goods sold Salary expense Account Rent expense Other expenses Dividend income-from Simbel Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities Consolidation Worksheet Consolidation Entries Consolidated Balances Cayce Dollars Simbel Debit Credit Dollars Dollars