Answered step by step
Verified Expert Solution
Question
1 Approved Answer
16 points Hardy Company is a wholly owned subsidiary of Stephine Corporation on January 1, 2021. Hardy operates in a foreign in Switzerland. Financial statements
16 points Hardy Company is a wholly owned subsidiary of Stephine Corporation on January 1, 2021. Hardy operates in a foreign in Switzerland. Financial statements for the year 2021 are as follows: Hardy Company Consolidated Income and Retained Earnings statements Sales Cost of goods sold Depreciation expense Other expenses Income taxes Net income For Year Ending December 31, 2021 Retained earnings 1-1 Less: dividends (declared 9-1) Retained Earnings 12/31 380,000 (100,000) (40,000) (90,000) (100,000) 50,000 200,000 (60,000) 190,000 Hardy Company Balance Sheet December 31, 2021 Cash 90,000 Accounts payable 80,000 Accounts receivable 100,000 Bonds payable 140,000 Inventory 40,000 Common stock 200,000 Land 100,000 Additional paid-in capital 100,000 Building net 200,000 Retained earnings 190,000 Equipment net Total assets 180,000 710,000 Total liabilities and equity 710,000 Additional Information: At the time of the combination, subsidiary's retained eamings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 200 and purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively. Hardy declared dividends of 60,000 CHF on September 1, 2021 Doct rates for Swiss franc are: Date January 1, 2019 January 1 2021 Exchange Rate 08542 6454 "Hivernury Land Building net Equipment net Total assets Additional Information: " 7 9 10 11 12 13 15 16 100,000 Additional paid-in capital 200,000 Retained earnings 180,000 710,000 Total liabilities and equity 100,000 190,000 710,000 At the time of the combination, subsidiary's retained eamings were 200,000 (CHF). Hardy uses the FIFO method of inventory valuation and its ending inventory in both 2020 and 2021 was purchased in the last quarter of the year. Beginning and ending inventory are 15,000 and 40,000, respectively Hardy declared dividends of 60,000 CHF on September 1, 2021. Direct exchange rates for Swiss franc are: Date January 1, 2019 January 1, 20211 Exchange Rate 0.8542 1.0451 September 1, 2021 December 31,2021 1.1572 1.1762 Average for 2021 1.1106 Average for last three months of 2021 1.1667 Average for last three months of 2020 1.0223 Required: A. Translate the year-end balance sheet and income statement of the foreign subsidiary using the temporal method of translation. B. Determine the remeasurement gain or loss to be reported in Stephanie's 2021 consolidated net income. C. Prepare Cost of Goods Schedule For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph Arial 10pt "T " A IXO t B (0) H&
Step 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