On January 1, 2010, Cayce Corporation acquired 100 percent of Simbel Company for consideration paid of $126,000,
Question:
Additional Information
¢ During 2010, the first year of joint operation, Simbel reported income of £E 163,000 earned evenly throughout the year. Simbel paid a dividend of £E 30,000 to Cayce on June 1 of that year. Simbel also paid the 2011 dividend on June 1.
¢ On December 9, 2011, Simbel classified a £E 10,000 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2012.
¢ The exchange rates for 1 £E are as follows:
January 1, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.300
June 1, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.290
Weighted average rate for 2010 . . . . . . . . . . . . . . . . 0.288
December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . 0.280
June 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.275
October 1, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.273
Weighted average rate for 2011 . . . . . . . . . . . . . . . 0.274
December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . 0.270
Translate Simbels 2011 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiarys functionalcurrency.
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Step by Step Answer:
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik