GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31...

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GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 20,000 55,000 40,000 37,000 60,000 92,000 30,000 32,000 20,000 20,000 10,000 40,000 60,000 92,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 75,000 30,000 45,000 15,000 30,000 Cash and Receivables Net Property, Plant, and Equipment Totals Accounts and Notes Payable Common Stock Retained Earnings Totals Revenues Operating Expenses including Depreciation of 3,000 francs Net Income Dividends Declared and Paid Increase in Retained Earnings Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Swiss Franc $1.09 1.03 1.06 1.08 EXERCISE 13-5 Foreign Currency Remeasurement-Temporal Method LO 8 Use the information provided in Exercise 13-4. Required: A. Convert (remeasure) the financial statements of the foreign subsidiary using the temporal method of translation. B. Prepare a schedule to verify the translation gain or loss. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 20,000 55,000 40,000 37,000 60,000 92,000 30,000 32,000 20,000 20,000 10,000 40,000 60,000 92,000 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 75,000 30,000 45,000 15,000 30,000 Cash and Receivables Net Property, Plant, and Equipment Totals Accounts and Notes Payable Common Stock Retained Earnings Totals Revenues Operating Expenses including Depreciation of 3,000 francs Net Income Dividends Declared and Paid Increase in Retained Earnings Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Swiss Franc $1.09 1.03 1.06 1.08 EXERCISE 13-5 Foreign Currency Remeasurement-Temporal Method LO 8 Use the information provided in Exercise 13-4. Required: A. Convert (remeasure) the financial statements of the foreign subsidiary using the temporal method of translation. B. Prepare a schedule to verify the translation gain or loss.

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The Current rate method differs from the temporal historical method in that assets and liabilities a... View the full answer