ale Wrap Text Calibri (Body) 11 & A BI UV Iva. Av Merge & Cente x & fx B C D E F G H I Madeline O'Fria US Inc. has a foreign subsidiary TRANSCO. The functional currency for TRANSCO is the local currency where it is headquartered. Translate TRANSCO's statements as of December 31, 2019 as shown below taking into account the following translation rates: REQUIRED: 1. Translate the income Statement, Statement of Retained Earnings and Balance Sheet and prepare Computation of Translation Adjustment as of 12/31/2019 using the Current Rate Method in the appropriate areas provided below. 2. Then answer the "theoretical" quesiton shown below the Statement on Retained Earnings on the US Inc.'s "net Investment exposure to foreign exchange risk." NOTE: IN CERTAIN CELLS US $ BALANCES HAVE BEEN PROVIDED - DO NOT CHANGE Key Rates-1 Local Currency units Rate when dividends declared on 10/1/2019 Rate at 12/31/2019 Average rate at 2019 0.75 - 34 x & fx M N Translate TRANSCO Balance Sheet TRANSCO Balance Sheet For Year Ending December 31, 2019 T Translation Rate ASSETS Cash Accounts receivable Inventory Prepaid expenses Total current assets 250,000 625,000 556,000 200,000 1,631,000 32 Land Property and equipment Accumulated depreciation Goodwill 500,000 1,500,000 (150,000) 300,000 34 Total assets 3,781,000 LC LIABILITIES & OWNERS EQUITY Accounts payable Total current liabilities 931,000 931,000 Long-term debt Total liabilities 500,000 1,431,000 Common stock Additional paid in capital Retained earnings - 12/31/2019 Cumulative Translation Adjustment Total equity 600,000 1,200,000 550,000 480,000 960,000 496,500 (262,500) 1,674,000 Do not change any for Common Stock and Retained Earn 2,350,000 DIV/0 3,781,000 $ 1,674,000 Total liabilities and equity Assets Liabilities+Equity YES COMPLETE THE COMPUTATION OF TRANSLATION ADJUSTMENT ale Wrap Text Calibri (Body) 11 & A BI UV Iva. Av Merge & Cente x & fx B C D E F G H I Madeline O'Fria US Inc. has a foreign subsidiary TRANSCO. The functional currency for TRANSCO is the local currency where it is headquartered. Translate TRANSCO's statements as of December 31, 2019 as shown below taking into account the following translation rates: REQUIRED: 1. Translate the income Statement, Statement of Retained Earnings and Balance Sheet and prepare Computation of Translation Adjustment as of 12/31/2019 using the Current Rate Method in the appropriate areas provided below. 2. Then answer the "theoretical" quesiton shown below the Statement on Retained Earnings on the US Inc.'s "net Investment exposure to foreign exchange risk." NOTE: IN CERTAIN CELLS US $ BALANCES HAVE BEEN PROVIDED - DO NOT CHANGE Key Rates-1 Local Currency units Rate when dividends declared on 10/1/2019 Rate at 12/31/2019 Average rate at 2019 0.75 - 34 x & fx M N Translate TRANSCO Balance Sheet TRANSCO Balance Sheet For Year Ending December 31, 2019 T Translation Rate ASSETS Cash Accounts receivable Inventory Prepaid expenses Total current assets 250,000 625,000 556,000 200,000 1,631,000 32 Land Property and equipment Accumulated depreciation Goodwill 500,000 1,500,000 (150,000) 300,000 34 Total assets 3,781,000 LC LIABILITIES & OWNERS EQUITY Accounts payable Total current liabilities 931,000 931,000 Long-term debt Total liabilities 500,000 1,431,000 Common stock Additional paid in capital Retained earnings - 12/31/2019 Cumulative Translation Adjustment Total equity 600,000 1,200,000 550,000 480,000 960,000 496,500 (262,500) 1,674,000 Do not change any for Common Stock and Retained Earn 2,350,000 DIV/0 3,781,000 $ 1,674,000 Total liabilities and equity Assets Liabilities+Equity YES COMPLETE THE COMPUTATION OF TRANSLATION ADJUSTMENT
