Crab Beach Systems, a U.S. multinational producer of computer hardware, has subsidiaries located throughout the world. The company recently received year-end financial statements from its Swiss subsidiary, Doghead Technology. Doghead was purchased by Crab Beach on January 1, 2012. Doghead's financial statements are prepared and submitted to Crab Beach headquarters in Swiss francs. The accountant in charge of translating the financial statements has been unable to locate last year's translated financial statements. Instead, the only data available from last year are the financial statements prepared in francs. Doghead's adjusted trial balances as of December 31, 2012 and 2013, in Swiss francs, are as follows:

Relevant exchange rates for 2013 and 2012 are as follows. The numbers shown are the U.S. dollar equivalent of one franc.
........................................................................... 2013 ................. 2012
January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.196 ............. $0.175
Date of dividend payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.205 ............... 0.188
Average rate for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.210 ............... 0.178
December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.228 ............... 0.196
Instructions:
Using the information given, prepare a translated income and retained earnings statement and balance sheet, in U.S. dollars, for Doghead Technology for 2013?

Transcribed Image Text:

Trial Balance Dec. 31, 2013 Trial Balance Dec. 31, 2012 Cash 750,000 1,215,000 1,850,000 975,000 6,505,000 3,156,000 500,000 14,951,000 1,825,000 1,125,000 1,200,000 301,000 10,500,000 14,951,000 Accounts Receivable 1,875,000 2,115,000 1,4200 7,985,000 4,234,000 900,000 19,059.000 2,100,000 1,000,000 1,200,000 640,000 Equipment Expenses Long-Term Debt. Cical Sk ...14,119, Total credits 19,059,000