Advanced Accounting II

ALAM INDAH Co. Lid. purchased 80% of the outstanding shares of Western Ranching Company located in Australia on January 1, 2013. The purchase price in Australian dollars is A$ 200,000 and a differential of A $ 40,000 is allocated to property, plant and equipment, which are amortized over 10 years. The remainder of the differential is allocated to patents. PT. ALAM INDAH amortizes patents for 10 years. The trial balance of Western Ranching Company as of December 31, 2013 in Australian dollars is as follows: Balance Sheet Accounts Debit Credit Cash AUD 44,100.00 Accounts Receivable (net) AUD 72,000.00 Inventory AUD 86,000.00 Fixed Assets AUD 240,000.00 Accumulated Depreciation - Fixed Assets AUD 60,000.00 Accounts Payable AUD 53,800.00 Debt to PT. ALAM INDAH AUD 10,800.00 Interest Payable AUD 3,000.00 Obligation Debt 12% AUD 100,000.00 Obligation Premi AUD 5,700.00 Ordinary share capital AUD 90,000.00 Retained earning AUD 40,000.00 Sales AUD $79,000.00 Cost of Good Sold AUD 330,000.00 Depreciation Expense AUD 24,000.00 Operational Expense AUD 131,500.00 Interest Expense AUD 5,700.00 Paid Dividend AUD 9,000.00 Total AUD 942,300.00 AUD 942,300.00 Additional Information: 1. 1. Western Ranching Company uses average cost for cost of goods sold. Inventories have increased by A $ 20,000 during the year. Purchases were made evenly throughout 2013. Ending inventory was acquired at the average exchange rate for the year. 2. Fixed assets were acquired as follows: Date Acquisition Cost Jan 1, 2011 |A$ 180.000 Jan 1, 2013 A$ 60.000 3. Fixed assets are depreciated using the straight-line method and their useful lives are 10 years without any residual value 4. Payable to PT ALAM INDAH in Australian Dollars. Bookkeeping of PT. ALAM INDAH shows receivables from Western Ranching Company amounting to Rp.82,080,0005. The 10-year bonds were issued on July 1, 2013, amounting to A $ 106,000, the premium is amortized on a straight-line basis. Interest is paid on April 1 and October 1. 6. Dividends are declared and paid on April 1 7. The exchange rates are as follows: 1 January 2011 A$1= RP 7.930 1 August 2011 A$1= RP 7.880 1 January 2013 A$1= RP 7.700 1 April 2013 A$1= RP 7.670 1 July 2013 A$1= RP 7.640 31 December 2013 A$1= RP 7.600 2013 averages.... .ASI ... Rp.7:650 Requested: a) Prepare a schedule to translate the Wetern Ranching Company's trial balance dated December 31, 2013 from Australian dollars to Indonesian rupiahs b) Create a schedule that provides evidence of the translation adjustment