Ding Inc., a US company, acquired a subsidiary in Switzerland on January 1, 2017. The subsidiary's...

Transcribed Image Text:

Ding Inc., a US company, acquired a subsidiary in Switzerland on January 1, 2017. The subsidiary's trial balance for January 1 and December 31 of 2017, in Swiss francs (CHF) are as follows: Dr (Cr) 1/1/2017 (In thousands CHF) Cash Inventory Plant and equipment, net Accounts and notes payable 12/31/2017 25,000 30,000 60,000 55,000 175,000 150,000 (125,000) (30,000) (80,000) (120,000) (30,000) (80,000) (500,000) Common stock Retained earnings, Jan. 1 Sales revenue Cost of goods sold Operation expenses Dividends 375,000 75,000 20,000 Total CHF O CHF 0 Additional information: 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF30,000 was purchased for cash during 2017, when the exchange rate was S0.50. Depreciation of CHF2,000 was taken on this purchase during 2017. 3. The ending inventory was purchased during December. Revenues, purchases, and operating expenses other than depreciation expense occurred evenly during the year. 5. Dividends were declared and paid on November 20, 2017, when the exchange rate was $0.58. 6. Exchange rates for 2017 were: 1/1/2017 Average rate 2017 Average rate Dec. 2017 0.54 12/31/2017 $0.49 0.52 0.55 a. Assume the functional currency of the subsidiary is the Swiss francs, translate the subsidiary's income statement and balance sheet on December 31, 2017. Instructions: b. Assume the functional currency of the subsidiary is the US dollar, translate the subsidiary's income statement and balance sheet on December 31, 2017. Ding Inc., a US company, acquired a subsidiary in Switzerland on January 1, 2017. The subsidiary's trial balance for January 1 and December 31 of 2017, in Swiss francs (CHF) are as follows: Dr (Cr) 1/1/2017 (In thousands CHF) Cash Inventory Plant and equipment, net Accounts and notes payable 12/31/2017 25,000 30,000 60,000 55,000 175,000 150,000 (125,000) (30,000) (80,000) (120,000) (30,000) (80,000) (500,000) Common stock Retained earnings, Jan. 1 Sales revenue Cost of goods sold Operation expenses Dividends 375,000 75,000 20,000 Total CHF O CHF 0 Additional information: 1. Included in operating expenses is depreciation expense of CHF5,000. 2. Plant and equipment of CHF30,000 was purchased for cash during 2017, when the exchange rate was S0.50. Depreciation of CHF2,000 was taken on this purchase during 2017. 3. The ending inventory was purchased during December. Revenues, purchases, and operating expenses other than depreciation expense occurred evenly during the year. 5. Dividends were declared and paid on November 20, 2017, when the exchange rate was $0.58. 6. Exchange rates for 2017 were: 1/1/2017 Average rate 2017 Average rate Dec. 2017 0.54 12/31/2017 $0.49 0.52 0.55 a. Assume the functional currency of the subsidiary is the Swiss francs, translate the subsidiary's income statement and balance sheet on December 31, 2017. Instructions: b. Assume the functional currency of the subsidiary is the US dollar, translate the subsidiary's income statement and balance sheet on December 31, 2017.

Answer rating: 100% (QA)

Ihrone Stotenent CHF Sales Cost cros 500000 77500 Cpods ... View the full answer