16 points v Hardy Company is a wholly owned subsidiary of Stephine Corporation on January 1,...
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16 points v Hardy Company is a wholly owned subsidiary of Stephine Corporation on January 1, 2021. Hardy operates in a foreign in Switzerland. Financial statements for the year 2021 are as follows: Cash Accounts receivable Inventory Land Building net Equipment net Total assets 90,000 100,000 Hardy Company Consolidated Income and Retained Earnings statements For Year Ending December 31, 2021 40,000 100,000 200,000 180,000 710,000 Sales Cost of goods sold Depreciation expense Other expenses Income taxes Not income Retained earnings 1-1 Hardy Company Balance Sheet December 31, 2021 Accounts payable Bonds payable Less: dividends (declared 9-1) Retained Earnings 12/31 Common stock Additional paid-in capital Retained earnings Total liabilities and equity 80,000 140,000 200,000 100,000 190,000 710,000 Date January 1, 2019 January 1 2021 380,000 (100,000) (40,000) (90,000) (100,000) 50,000 200,000 (60,000) 190.000 Additional Information: At the time of the combination, subsidiary's retained earnings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 200 and 2 purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively. Hardy declared dividends of 60,000 CHF on September 1, 2021 Dec rates for Swiss franc are: Exchange Rate 08542 10454 "HIVERNUARY Land Building net Equipment net Total assets 6 7 VA 9 www 100,000 200,000 180,000 710,000 10 11 12 Additional paid-in capital Retained earnings Total liabilities and equity 14 AT Additional Information: At the time of the combination, subsidiary's retained earnings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 2020 and 2021 was purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively Hardy declared dividends of 60,000 CHF on September 1, 2021. Direct exchange rates for Swiss franc are: 15 Date January 1, 2019 January 1, 2021 September 1, 2021 December 31, 2021 " 16 10pt Average for 2021 Average for last three months of 2021 Average for last three months of 2020 Required: A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the temporal method of translation B. Determine the remeasurement gain or loss to be reported in Stephanie's 2021 consolidated net income. C. Prepare Cost of Goods Schedule For the toolbar, press ALT-F10 (PC) or ALT+FN+F10 (Mac) B IVS Paragraph V Arial 20 www.YOU 100.000 190,000 710.000 V M EY C E Exchange Rate 0.8542 1.0451 1:1572 1.1762 AV 1.1106 1.1667 1.0223 2 M 田田田回 I x 0 BO * (0) 0 M 28 31 16 points v Hardy Company is a wholly owned subsidiary of Stephine Corporation on January 1, 2021. Hardy operates in a foreign in Switzerland. Financial statements for the year 2021 are as follows: Cash Accounts receivable Inventory Land Building net Equipment net Total assets 90,000 100,000 Hardy Company Consolidated Income and Retained Earnings statements For Year Ending December 31, 2021 40,000 100,000 200,000 180,000 710,000 Sales Cost of goods sold Depreciation expense Other expenses Income taxes Not income Retained earnings 1-1 Hardy Company Balance Sheet December 31, 2021 Accounts payable Bonds payable Less: dividends (declared 9-1) Retained Earnings 12/31 Common stock Additional paid-in capital Retained earnings Total liabilities and equity 80,000 140,000 200,000 100,000 190,000 710,000 Date January 1, 2019 January 1 2021 380,000 (100,000) (40,000) (90,000) (100,000) 50,000 200,000 (60,000) 190.000 Additional Information: At the time of the combination, subsidiary's retained earnings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 200 and 2 purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively. Hardy declared dividends of 60,000 CHF on September 1, 2021 Dec rates for Swiss franc are: Exchange Rate 08542 10454 "HIVERNUARY Land Building net Equipment net Total assets 6 7 VA 9 www 100,000 200,000 180,000 710,000 10 11 12 Additional paid-in capital Retained earnings Total liabilities and equity 14 AT Additional Information: At the time of the combination, subsidiary's retained earnings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 2020 and 2021 was purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively Hardy declared dividends of 60,000 CHF on September 1, 2021. Direct exchange rates for Swiss franc are: 15 Date January 1, 2019 January 1, 2021 September 1, 2021 December 31, 2021 " 16 10pt Average for 2021 Average for last three months of 2021 Average for last three months of 2020 Required: A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the temporal method of translation B. Determine the remeasurement gain or loss to be reported in Stephanie's 2021 consolidated net income. C. Prepare Cost of Goods Schedule For the toolbar, press ALT-F10 (PC) or ALT+FN+F10 (Mac) B IVS Paragraph V Arial 20 www.YOU 100.000 190,000 710.000 V M EY C E Exchange Rate 0.8542 1.0451 1:1572 1.1762 AV 1.1106 1.1667 1.0223 2 M 田田田回 I x 0 BO * (0) 0 M 28 31
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A Translation of yearend balance sheet and income statement using the temporal method Income Statement in CHF Sales Given as 700000 Cost of goods sold ... View the full answer
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Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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