Omar Co. is a wholly owned foreign subsidiary of Trot Corporation, a Canadian company. Omar Co.'s transactions
Question:
Omar Co. is a wholly owned foreign subsidiary of Trot Corporation, a Canadian company. Omar Co.'s transactions and financial statements are denominated in the local (functional) currency, the omnit (OM). Consider the following information:
1. Omar Co.'s common stock was issued in 2012 when the exchange rate was C$1.00 = OM 1.20.
2. Fixed assets of OM 380,000 were acquired in 2012 when the exchange rate was C$1.00 = OM 1.10. They had a life of 10 years and are depreciated straight line. A full year's depreciation is taken in the year of purchase.
3. As of January 1, 2013, the Retained Earnings balance was translated at $350,000 (OM 400,000).
4. Dividends of OM 40,000 were declared on March 15, 2013, and equipment of OM 54,000 net of depreciation was sold on October 1, 2013. No depreciation was taken in the year of sale.
5. The following direct exchange rates were in effect during the year:
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Required
Using the above information, translate the Omar Statement of Financial Position into Canadian dollars.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Assets Cash Inventory Fixed assetsnet Liabilities Accounts payable Acc...View the full answer
