Answered step by step
Verified Expert Solution
Question
1 Approved Answer
11.12a Please prepare requirement b prepare a schedule providng proof of the translation adjustment That's all I need, I already did requirement a. a. Prepare
11.12a
Please prepare requirement b prepare a schedule providng proof of the translation adjustment That's all I need, I already did requirement a.
a. Prepare a schedule translating the December 31,203, trlal balance of Salina Ranching from Australlan dollars to U.S. dollars. (If no adjustment is needed, select 'No entry necessary'.) b. Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.) Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located In Australla, on January 1, 20X3. The purchase price in Australlan dollars (A\$) was A$200,000, and A$4,000 of the differentlal was allocated to plant and equipment, which is amortized over a 10-year perlod. The remainder of the dlfferentlal was attrlbutable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trlal balance on December 31, 20X3, in Australlan dollars is as follows: Additional Information: 1. Salina Ranching uses average cost for cost of goods sold. Inventory Increased by A$20,000 during the year. Purchases were made unlformly during 203. The ending Inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows: 3. Plant and equipment are depreclated using the straight-Ine method and a 10-year IIfe with no residual value. 4. The payable to Palermo is in Australlan dollars. Palermo's books show a recelvable from Salina RanchIng of $6,480. 5. The 10-year bonds were Issued on July 1,203, for A$106,000. The premlum is amortized on a stralght-IIne basis. The interest is pald on Aprll 1 and October 1. 6. The dividends were declared and pald on Aprll 1. 7. Exchange rates were as follows: a. Prepare a schedule translating the December 31,203, trlal balance of Salina Ranching from Australlan dollars to U.S. dollars. (If no adjustment is needed, select 'No entry necessary'.) b. Prepare a schedule providing a proof of the translation adjustment. (Amounts to be deducted should be indicated with a minus sign.) Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located In Australla, on January 1, 20X3. The purchase price in Australlan dollars (A\$) was A$200,000, and A$4,000 of the differentlal was allocated to plant and equipment, which is amortized over a 10-year perlod. The remainder of the dlfferentlal was attrlbutable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trlal balance on December 31, 20X3, in Australlan dollars is as follows: Additional Information: 1. Salina Ranching uses average cost for cost of goods sold. Inventory Increased by A$20,000 during the year. Purchases were made unlformly during 203. The ending Inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows: 3. Plant and equipment are depreclated using the straight-Ine method and a 10-year IIfe with no residual value. 4. The payable to Palermo is in Australlan dollars. Palermo's books show a recelvable from Salina RanchIng of $6,480. 5. The 10-year bonds were Issued on July 1,203, for A$106,000. The premlum is amortized on a stralght-IIne basis. The interest is pald on Aprll 1 and October 1. 6. The dividends were declared and pald on Aprll 1. 7. Exchange rates were as followsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started