On January 1, 20X6, Woods Ltd. formed a foreign subsidiary that issued all of its currently outstanding common shares on that date. Selected captions from the SFPs, all of which are shown in local currency units (LCU), are as follows:

Additional Information:
Exchange Rates
January 1, 20X6 to July 31, 20X6..................................................................... 2.1 LCU to $ 1
August 1, 20X6 to October 31, 20X6................................................................ 1.9 LCU to $ 1
November 1, 20X6 to June 30, 20X7................................................................ 1.8 LCU to $ 1
July 1, 20X7 to December 31, 20X7................................................................. 1.6 LCU to $ 1
Average rate for 20X6....................................................................................... 2.0 LCU to $ 1
Average rate for 20X7....................................................................................... 1.7 LCU to $ 1
Accounts Receivable€” Analysis

On January 1, 20X6, Woods€™ foreign subsidiary purchased land for 24,000 LCU and capital assets for 140,000 LCU. On July 1, 20X7, additional equipment was purchased for 30,000 LCU. Capital assets are being depreciated on a straight- line basis over a 10- year period with no salvage value. A full year€™s depreciation is taken in the year of purchase.
On January 15, 20X6, 7% bonds with a face value of 120,000 LCU were sold. The bonds pay interest on July 15 and January 15 each year. The first payment was made on July 15, 20X6.

Required
Prepare a schedule translating the selected captions above into Canadian dollars at December 31, 20X6, and December 31, 20X7, using the temporal method. Show supporting computations in goodform.

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207 20X6 Accounts receivable, net of allowance for uncollectable accounts of 2,200 LCU at December 31, 20X7, and 2000 LCU at December 31, 20X6 40,000 80,000 35,000 75,000 Inventories, at cost Capital assets, net of accumulated depreciation of 31,000 LCU at December 31, 20X7, and 14,000 LCU at December 31, 20X6 163,000 150,000 Long-term debt Common stock authorized shares par value 10 LCU per 100000 120,000 share, issued and outstanding 5,000 shares at December 31,20X7, and December 31, 20X6 50,000 50,000 20X7 37,000 432,000 (3,200 1000 20x6 (in LCUs) Balance beginning of year Sales (36,000 LCU per month in 20X7 and 31,000 per month in 20X6) Collections Write-offs (May 20X7 and December 20x6) 372,000 423,600) 334,000) 42200 37,000 Allowance for Uncollectable Accounts 20x7 2,000 3,400 3.200 20X6 in LCUs) Balance beginning of year Provision for uncollectables Write-offs 3,000 1,000 2000 Inventory, FIFO Basis 20x7 20x6 in LCUs) Balance beginning of year Purchases (June 20X7 and June 20X6) Less: Inventory at year-end Cost of goods sold 75,000 335,000 375,000 8000075000 300,000