Separate financial statements of Panamer Corporation, a U.S. Multinational enterprise, and its branch for the year...

 

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Separate financial statements of Panamer Corporation, a U.S. Multinational enterprise, and its branch for the year ended December 31, Year 6 are shown below. (IN is the symbol for the Iticar pesos) Panamer Corporation and Branch Separate Financial Statements For year ended December 31, Year 6 Panamer Corporation (Dollars) Iticar Branch (Pesos) Income Statement Revenue $ 410,000 $ 410,000 IN 381,000 IN 381,000 Sales Total Revenue Cost and Expenses Cost of goods sold Depreciation Expense Selling Expense Other operating expense Income taxes expense Total costs & expenses $ 300,000 IN 300,000 17,500 16,500 18,000 15.000 IN 367,000 IN 14.000 10,500 34,500 35,000 15.000 $ 395,000 15.000 Net Income Statement of Retained Earnings Retained Earnings, beginning of year Net Income S 25,000 15,000 S 40.000 Retained Earnings, end of year Statement of Financial Position Assets S 19,000 34,000 20,000 12,000 45,000 (15.000) $ 115.000 IN 10,000 35,000 83,000 Cash Accounts Receivable Inventories Branch Plant Assets Accumulated Depreciation 175,000 (75.000) IN 228.000 Total Assets Liabilities & Stockholder's equity Accounts Payable Notes Payable Home Office (Including Net Income) Common stock Retained Earnings Total Liabilities & Stockholder's Equity S 25,000 IN 7,000 100,000 121,000 50,000 40,000 $ 115.000 IN 228.000 Note : Exchange rates for the Itican pesos, which is the functional currency of Itican Branch were as follows : - January 1, Year 6 December 31, Year 6 All merchandise and plant assets of branch are sent from Home Office at beginning of Year 6. S0.12 S0.08 Instructions : 1. Prepare translated trial balance to translate Itican Branch financial statements from Itican pesos to U.S. dollars. Use average exchange rates where appropriate. (Show in Trial Balance form) 2. Prepare a working paper for combined financial statements on December 31, Year 6. Separate financial statements of Panamer Corporation, a U.S. Multinational enterprise, and its branch for the year ended December 31, Year 6 are shown below. (IN is the symbol for the Iticar pesos) Panamer Corporation and Branch Separate Financial Statements For year ended December 31, Year 6 Panamer Corporation (Dollars) Iticar Branch (Pesos) Income Statement Revenue $ 410,000 $ 410,000 IN 381,000 IN 381,000 Sales Total Revenue Cost and Expenses Cost of goods sold Depreciation Expense Selling Expense Other operating expense Income taxes expense Total costs & expenses $ 300,000 IN 300,000 17,500 16,500 18,000 15.000 IN 367,000 IN 14.000 10,500 34,500 35,000 15.000 $ 395,000 15.000 Net Income Statement of Retained Earnings Retained Earnings, beginning of year Net Income S 25,000 15,000 S 40.000 Retained Earnings, end of year Statement of Financial Position Assets S 19,000 34,000 20,000 12,000 45,000 (15.000) $ 115.000 IN 10,000 35,000 83,000 Cash Accounts Receivable Inventories Branch Plant Assets Accumulated Depreciation 175,000 (75.000) IN 228.000 Total Assets Liabilities & Stockholder's equity Accounts Payable Notes Payable Home Office (Including Net Income) Common stock Retained Earnings Total Liabilities & Stockholder's Equity S 25,000 IN 7,000 100,000 121,000 50,000 40,000 $ 115.000 IN 228.000 Note : Exchange rates for the Itican pesos, which is the functional currency of Itican Branch were as follows : - January 1, Year 6 December 31, Year 6 All merchandise and plant assets of branch are sent from Home Office at beginning of Year 6. S0.12 S0.08 Instructions : 1. Prepare translated trial balance to translate Itican Branch financial statements from Itican pesos to U.S. dollars. Use average exchange rates where appropriate. (Show in Trial Balance form) 2. Prepare a working paper for combined financial statements on December 31, Year 6.

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