Prepaid expenses (supplies) of NZ$18,000 were on hand when Phi acquired Stu. Other operating expenses include...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepaid expenses (supplies) of NZ$18,000 were on hand when Phi acquired Stu. Other operating expenses include NZ$8,000 of these supplies that were used in 2011. The remaining NZ$10,000 of supplies is on hand at year-end. 2. The NZ120,000 cost of sales consists of NZ$50,000 inventory on hand at January 1,2011, and NZ$100,000 in purchases during the year, less NZ$30,000 ending inventory that was acquired when the exchange rate was $0.66. 3. The NZ$60,000 of equipment consists of NZ$50,000 included in the business combination and NZ$10,000 purchased during 2011, when the exchange rate was $0.68. A depreciation rate of 20 percent is applicable to all equipment for 2011. 4. Exchange rates for 2011 are summarized as follows: Current exchange rate January 1, 2011 Exchange rate when new equipment was acquired Average exchange rate for 2011 Exchange rate for December 31, 2011, inventory Exchange rate for dividends Current exchange rate December 31, 2011 $0.70 0.68 0.67 0.66 0.66 0.65 REQUIRED: Prepare a worksheet to remeasure the adjusted trial balance of Stu Corporation into U.S. dollars at December 31, 2011. Prepaid expenses (supplies) of NZ$18,000 were on hand when Phi acquired Stu. Other operating expenses include NZ$8,000 of these supplies that were used in 2011. The remaining NZ$10,000 of supplies is on hand at year-end. 2. The NZ120,000 cost of sales consists of NZ$50,000 inventory on hand at January 1,2011, and NZ$100,000 in purchases during the year, less NZ$30,000 ending inventory that was acquired when the exchange rate was $0.66. 3. The NZ$60,000 of equipment consists of NZ$50,000 included in the business combination and NZ$10,000 purchased during 2011, when the exchange rate was $0.68. A depreciation rate of 20 percent is applicable to all equipment for 2011. 4. Exchange rates for 2011 are summarized as follows: Current exchange rate January 1, 2011 Exchange rate when new equipment was acquired Average exchange rate for 2011 Exchange rate for December 31, 2011, inventory Exchange rate for dividends Current exchange rate December 31, 2011 $0.70 0.68 0.67 0.66 0.66 0.65 REQUIRED: Prepare a worksheet to remeasure the adjusted trial balance of Stu Corporation into U.S. dollars at December 31, 2011.
Expert Answer:
Answer rating: 100% (QA)
Worksheet for Remeasuring Stu Corporations Adjusted Trial Balance into US Dollars December 31 2011 N... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these accounting questions
-
Phi, a U.S. firm, acquired 100 percent of Stu's outstanding stock at book value on January 1, 2011, for $112,000. Stu is a New Zealand company, and its functional currency is the U.S. dollar. The...
-
Phi, a U.S. firm, acquired 100 percent of Stu's outstanding stock at book value on January 1, 2016, for $112,000. Stu is a New Zealand-based company, and its functional currency is the U.S. dollar....
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
If the interest rate on debt is lower than ROA, then a firm will Valitse yksi: a. increase ROE b. not change ROE c. none of these is correct d. decrease ROE e. change the ROE in an indeterminable...
-
Given Io = 2mA in the network in figure, find VA. 1 kn 6 mA ww 1 kn 2 kn 1 kn 2 kn
-
Consider the design of a network of heat exchangers that requires the minimum utilities for heating and cooling. Is it true that a pinch temperature can occur only at the inlet temperature of a hot...
-
Cobra Golf Club Corp. had the following stockholders' equity at December 31, 2007: On June 30, 2008, Cobra split its common stock 2 for 1. Make the memorandum entry to record the stock split, and...
-
The management of a chain of fast-food restaurants wants to investigate the relationship between the daily sales volume (in dollars) of a company restaurant and the number of competitor restaurants...
-
A firm shares the following information with you: EBIT = $45 million; Tax rate = 35%; Debt = $ 100 million; Cost of debt = 7 %; Unlevered cost of capital = 14% The firm's creditors indicate that if...
-
How would the companys cash needs change for the company in Examples 14-1 to 14-5 if the third project started in May instead of February and the retention was not released until the following year?
-
Two identical metal balls are suspended by insulating threads as shown in Figure 1. Both balls have the same net charge. In this problem, do not assume the balls are point charges. Ball 1 Ball 2 a....
-
A raft loaded with rocks is floating in a swimming pool. We mark the level of water in the swimming pool and on the raft. If we drop the rocks into the pool, what will happen to the water level in...
-
Analyse the security procedures that BMW must implement to guarantee that inventory is recorded accurately with as few errors as feasible.
-
Marigold Company has sales of $500000, variable costs of $449500, and fixed costs of $28000. Ivanhoe Company has sales of $500000, variable costs of $198000, and fixed costs of $242000. Marigold's...
-
XYZ is a respectable midsized banking group in India that differentiates itself from its competitors through its attention to customer service and satisfaction. The bank also the lower interest rates...
-
Solve. log3 (p) = 5 p = Question Help: Video Message instructor Calculator Submit Question
-
A relatively new company, Wine To End Whining, Inc., has determined they need to engage in a budgeting process as part of their new strategic plan. The Company has asked you to provide the following...
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
On January 1, 2011, J. G. Monee created a student aid trust fund to which he donated a building valued at $400,000 (his cost was $250,000), bonds having a market value of $500,000, and $100,000 cash....
-
On June 15, 2011, Malmo City authorizes the issuance of $500,000 par of 6 percent serial bonds to be issued on July 1, 2011, and to mature in annual serials of $100,000 beginning on July 1, 2012. The...
-
Explain why the noncash investments of partners should be recorded at their fair values.
-
a. What responsibility does the auditor have when he believes material errors or irregularities may exist? b. What are the possible effects of the foregoing on the auditor's standard report?
-
Watts and Williams, a firm of certified public acccountants, audited the accounts of Sampson Skins, Inc., a corporation that imports and deals in fine furs. Upon completion of the examination the...
-
a. Can an examination made in accordance with generally accepted auditing standards be relied upon to detect illegal acts? Why or why not? b. What are the possible effects of illegal acts on the...
Study smarter with the SolutionInn App