The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that
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Interest expense . . . . . . . . . . . . . . . CHF 25,000
Interest payable . . . . . . . . . . . . . . . CHF 31,250
Note payable . . . . . . . . . . . . . . . . CHF 500,000
Relevant exchange rates between the Israeli shekel (ILS) and Swiss franc (CHF), and between the U.S. dollar (USD) and Israeli shekel (ILS) follow:
_______________________________________________ ILS per CHF ____USD per ILS
October 1, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.86 ............ 0.30
January 1, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.91 ............ 0.29
Average for 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.95 ............ 0.27
December 31, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02 ............ 0.25
a. Determine the Israeli shekel amounts at which the Swiss franc balances should be reported on the Israel subsidiary's December 31, 2017, trial balance.
b. Determine the U.S. dollar amounts at which the Swiss franc balances should be included in IOP's 2017 consolidated financial statements.
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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