P established a subsidiary, S, in Atlantis on 1/1/2020 where the currency is the . P invested
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P established a subsidiary, S, in Atlantis on 1/1/2020 where the currency is the α. P invested α 100,000 when the α:$ rate was 5:1. During 2020 S earned α 10,000, and paid a dividend of α2,000 on 12/1. In 2021 S earned α 14,000, not including a loss of α 3,000 recorded on 10/1/2021. and paid dividends of α 3,000 on 12/1. Make all required journal entries in P’s books for 2020 and 2021 and post to T-Accounts: Investment, Equity Income, Accumulated Comprehensive Income, OCC not needed.
DATE | RATE α:$ |
1/1/2020 | 5:1 |
12/1/2020 | 4.5:1 |
2020 Average | 4.4:1 |
12/31/2020 | 4.2 |
10/1/2021 | 4.3 |
12/1/2021 | 4.6 |
2021 Average | 4.7 |
12/31/2021 | 4.8 |
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