1. On January 2, 200X, Parliament Corporation, a US multinational enterprise, acquired all the outstanding common stock of Sirius Company, which is located in a country whose currency is the Euro. The books are kept in Euros and the Euro is the functional currency.

Remeasure and/or translate the 200X Sirius financial statements to the reporting currency (US dollars).

Sirius Company Financial Statements
For the Year Ending December 31, 200X (in EUROs)
Income Statement
Sales	100,000
Cost of Goods Sold	(60,000)
Operating Expenses	(20,000)
Net Income	20,000
Statement of Retained Earnings
Beginning Retained Earnings	70,000
Net Income	20,000
Ending Retained Earnings	90,000
Balance Sheet
Current Assets	130,000
Plant	820,000
Total Assets	950,000
Current Liabilities	60,000
Long Term Debt	340,000
Total Liabilities	400,000
Common Stock	200,000
Paid in Capital	260,000
Retained Earnings	90,000
Total Equity	550,000
Total Liabilities and Equity	950,000
	One EURO=
Current rate	$1.40
Average rate	$1.30
Historic rate	$1.20

2.

The Trial Balance of the Paris Branch of Cisalpine Company on Dec 31, 200X is presented below:

Balance in Euros

Cash 300,000

Inventory 120,000

Common Stock (400,000)

Retained Earnings ( 7,000)

Sales (120,000)

Cost of Goods Sold 85,000

Operating expenses 22,000

Conversion rates:

Current One Euro = $1.08

Average One Euro = $1.07

Historic One Euro = $1.06

US Dollars are the functional and reporting currency.

Complete the remeasurement of the Paris Branch to US dollars (the functional currency) on December 31, 200X.

3.

The following items were displayed in the statement of affairs for Lubbock Company:

Fully secured liabilities $90,000

Partially secured liabilities 12,000

Unsecured liabilities without priority 220,000

Unsecured liabilities with priority 8,000

Assets pledged for fully secured assets 120,000

Assets pledged for partially secured assets 6,000

Free Assets 120,000

Based on the foregoing information prepare a working paper showing the how the estimated amount received from the sale of assets will be distributed to the four classes of creditors.

4.

The trial balance of the Estate of Tom Beresford at April 17, 200X is as follows:

Debit (Credit)

Principal cash $ 20,750

GM Stock 50,000

GMAC Bonds 100,000

Interest receivable on bonds 2,500

Funeral and administrative expenses 6,800

Estate principal (180,050)

Prepare the journal entries on the books of the Estate of Tom Beresford to transfer the assets and close the books on April 17, 200X.

Prepare the journal entries on the books of the First State Bank to record the receipt of the assets an April 17, 200X.