QRS Company's functional currency is the Philippine Peso. It started operations on January 4, 2021. Below...

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QRS Company's functional currency is the Philippine Peso. It started operations on January 4, 2021. Below are 2022 Philippine Peso financial statements of QRS with comparative information. QRS Company Statement of Financial Position As of December 31 Cash Accounts receivable Inventory Property, plant and equipment, net Total assets Accounts payable Common stock Additional paid in capital Retained earnings Total liabilities and stockholders' equity QRS Company Statement of Comprehensive Income For the period-ended December 31 Sales Cost of goods sold Depreciation expense Realized foreign currency losses Unrealized foreign currency losses Net income On April 1 2022 ARC declared dividends of 82 175 2022 P 900,000 100,000 2021 P 799,269 70,266 610,000 66,978 P 1,676,978 P 300,000 553,140 89,304 P 1,511,979 100,000 P 255,200 100,000 900,000 900,000 376,978 256,779 P 1,676,978 P 1,511,979 2022 P 750,000 2021 P 698,315 -403,460 -22,326 -12,350 -500,000 -22,326 -20,000 -5,000 -3,400 P202,674 P 256,779 The relevant exchange rates are (PHP for HKD 1): January 4, 2021 6.1938 December 31, 2021 6.5101 Weighted average for 2021 6.3253 January 3, 2022 6.5386 April 1, 2022 6.6272 December 29, 2022 7.1996 Weighted average for 2022 6.9147 Guide questions: 1. How are the elements of the comparative financial statements translated to the presentation currency? 2. What is the foreign currency translation adjustment? 3. Prepare the 2022 SFP and SCI with comparative information expressed in HKD. 4. Determine the balance of the foreign currency translation adjustment presented in 2021 and 2022. QRS Company's functional currency is the Philippine Peso. It started operations on January 4, 2021. Below are 2022 Philippine Peso financial statements of QRS with comparative information. QRS Company Statement of Financial Position As of December 31 Cash Accounts receivable Inventory Property, plant and equipment, net Total assets Accounts payable Common stock Additional paid in capital Retained earnings Total liabilities and stockholders' equity QRS Company Statement of Comprehensive Income For the period-ended December 31 Sales Cost of goods sold Depreciation expense Realized foreign currency losses Unrealized foreign currency losses Net income On April 1 2022 ARC declared dividends of 82 175 2022 P 900,000 100,000 2021 P 799,269 70,266 610,000 66,978 P 1,676,978 P 300,000 553,140 89,304 P 1,511,979 100,000 P 255,200 100,000 900,000 900,000 376,978 256,779 P 1,676,978 P 1,511,979 2022 P 750,000 2021 P 698,315 -403,460 -22,326 -12,350 -500,000 -22,326 -20,000 -5,000 -3,400 P202,674 P 256,779 The relevant exchange rates are (PHP for HKD 1): January 4, 2021 6.1938 December 31, 2021 6.5101 Weighted average for 2021 6.3253 January 3, 2022 6.5386 April 1, 2022 6.6272 December 29, 2022 7.1996 Weighted average for 2022 6.9147 Guide questions: 1. How are the elements of the comparative financial statements translated to the presentation currency? 2. What is the foreign currency translation adjustment? 3. Prepare the 2022 SFP and SCI with comparative information expressed in HKD. 4. Determine the balance of the foreign currency translation adjustment presented in 2021 and 2022.