Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment Salary payable Depreciation expense The following U.S.$ per KQ exchange rates are applicable: January 1, 2016 Average for 2016 January 1, 2017 March 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 KQ 320,000 176,000 $0.31 0.32 0.36 0.37 0.39 0.40 0.38 84,000 20,000 28,000 48,000 25,200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements. a. Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? (Round your answers to 2 decimal places.) a. X Answer is complete but not entirely correct. Account Sales Inventory Equipment Rent expense Dividends Noton vannivabla $ $ $ $ $ Exchange Rate 0.38 0.40 0.40 0.38 0.31 X 010 b. Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense $ SA $ $ $ $ SA A $ $ $ $ $ 0.31 0.40 0.40 0.40 0.38 0.38 0.31 x 0.31 0.38 0.31 X 0.40 0.31 0.40 0.31 Lancer, Inc. (a U.S.-based company), establishes a subsidiary in a foreign country on January 1, 2016. The following account balances for the year ending December 31, 2017, are stated in kanquo (KQ), the local currency: Sales Inventory (bought on 3/1/17) Equipment (bought on 1/1/16) Rent expense Dividends (declared on 10/1/17) Notes receivable (to be collected in 2020) Accumulated depreciation-equipment Salary payable Depreciation expense The following U.S.$ per KQ exchange rates are applicable: January 1, 2016 Average for 2016 January 1, 2017 March 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 KQ 320,000 176,000 $0.31 0.32 0.36 0.37 0.39 0.40 0.38 84,000 20,000 28,000 48,000 25,200 7,400 8,400 Lancer is preparing account balances to produce consolidated financial statements. a. Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? (Round your answers to 2 decimal places.) a. X Answer is complete but not entirely correct. Account Sales Inventory Equipment Rent expense Dividends Noton vannivabla $ $ $ $ $ Exchange Rate 0.38 0.40 0.40 0.38 0.31 X 010 b. Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense Sales Inventory Equipment Rent expense Dividends Notes receivable Accumulated depreciation- equipment Salary payable Depreciation expense $ SA $ $ $ $ SA A $ $ $ $ $ 0.31 0.40 0.40 0.40 0.38 0.38 0.31 x 0.31 0.38 0.31 X 0.40 0.31 0.40 0.31
Expert Answer:
Answer rating: 100% (QA)
As dividend is a liability it has to be recorded at exchange rate at the end of the peri... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these finance questions
-
Assume that you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been...
-
A business has inventory of material A of 400 units valued at $2.20 per unit at 1 September. During the month of September the movements of material A were as follows: 5 September 10 September Issue...
-
On July 1, 2021, Bass Company issued 4,000 bonds of 8%, $1,000 face amount for $3,504,000. The bonds were issued to yield 10%. The bonds are dated July 1, 2021 and mature on July 1, 2030. Interest is...
-
Economic crises tend to occur sporadically virtually every decade and in various countries ranging from Sweden to Argentina, from Russia to Korea, and from Japan to the United States. Each crisis is...
-
Suppose that X1, . . . , Xn form a random sample from the normal distribution with unknown mean and known variance 2. Let stand for the c.d.f. of the standard normal distribution, and let 1 be its...
-
What is the difference between gross domestic product (GDP) and gross domestic income (GDI)?
-
A _____________ plot can be used to determine whether a multiple regression equation is appropriate. In Exercises 7 and 8, fill in each blank with the appropriate word or phrase.
-
The supply curve for product X is given by Qsx = - 520 + 20Px. a. Find the inverse supply curve. b. How much surplus do producers receive when Qx = 400? When Qx = 1,200?
-
K Data for Harlan Designs, Inc. follow: (Click the icon to view the data.) Read the requirements. Harlan Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 2024 2023 A...
-
A distillation column can be purchased and installed for P 2,000,000. It will incur P35,000 in operations and maintenance expenses and yet can start generating revenues of P125,000 each month as soon...
-
(a) Engineering materials are widely used to produce useful products and structures. (i) List FOUR (4) main classes of engineering materials and give ONE (1) general property for each of the classes....
-
Let h(t) be the triangular pulse shown below, h(t) and let z(t) be the infinite train of impulse functions, x(t) = 6(t-kT) k=18 Determine and sketch y(t) = r(t) * h(t) for the different values of T:...
-
EXERCISE 3 Arable, Babble and Cradle formed ABC Company with the following initial capital investments: Arable P100,000.00 Babble P200,000.00 Cradle P300,000,00 Compute the share in profits and...
-
Clark Company's current year income statement, comparative balance sheets, and additional information follow. For the year. (1) all sales are credit sales, (2) all credits to Accounts Receivable...
-
Net Income $40,000 Depreciation $8,000 Decrease in Accounts Payable $1,800 Decrease in Inventory $2,500 Increase in Mortgage Payable $10,000 Increase in Common Stock $25,000 Increase in Accounts...
-
At December 31, Palisades and Sherwood submitted the following balances for consolidation. There were no intra- entity payables on that date. Also, Palisades had not yet recorded any goodwill...
-
How is information used for decision making? How managers approach decisions? Please explain "decision conditions" B) Please explain, the decision making process. (Steps in decision making) Do the...
-
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
-
Hoffman Engineering Company is a young and growing producer of pre-stressed concrete manufacturing equipment. You have been retained by the company to advise it in the preparation of a statement of...
-
The following table reports the operating cycle, cash conversion cycle, and current ratio for three apparel retailers all having year-ends at January 31, 2015. Aeropostale, which was originally owned...
-
Presented below are excerpts from the 2012 annual report of Marstons PLC, a UK-based company that operates pubs. Property, plant and equipment ¢ Freehold and leasehold properties are initially...
-
Can the number of instructions executed serve as a timer mechanism in a real-time operating system? How?
-
For the inertial measurement system, which testing approaches would you use? When and why?
-
Research the use of McCabes metric in real-time systems by searching theliterature.
Study smarter with the SolutionInn App