Question
Assume that your company owns a subsidiary operating in Germany. The subsidiary conducts most of its business activities in the European Economic Union and maintains
Assume that your company owns a subsidiary operating in Germany. The subsidiary conducts most of its business activities in the European Economic Union and maintains its books using the Euro as its functional currency.
The trial balance of the German subsidiary's accounts are found below. The relevant exchange rates (1 Euro = USD) are:
- Beginning of year: $0.95
- End of year: 1.04
- Average rate: 1.01
- PPE purchase date rate: 0.99
- Long-term debt borrrowing date rate: 1.03
- Dividend rate: 1.02
- Historical rate (common stock and APIC): 0.63
Required
- Find the relevant translation rate for the trial balance and complete the translation of the trial balance using the worksheet provided, assume that beginning of year retained earnings is 437,543
- Calculate the Cumulative Translation Adjustment.
- Calculate the ending balance of retained earnings.
| Debits | Euro | Rate | USD |
| Cash | 311,637 | ||
| A/R | 254,040 | ||
| Inventory | 326,310 | ||
| PPE, net | 603,564 | ||
| COGS | 657,000 | ||
| Operating Expenses | 284,700 | ||
| Dividends | 15,330 | ||
| 2,452,581 | |||
| Credits | |||
| Sales | 1,095,000 | ||
| BOY Retained Earnings | 574,875 | ||
| Current liabilities | 185,712 | ||
| LT liabilities | 432,744 | ||
| Common Stock | 73,000 | ||
| APIC | 91,250 | ||
| 2,452,581 |
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Information Systems Audit In Banking Sector A Study Of SBI And ICICI Banks
Authors: C. Mallesha, M. Sulochana
1st Edition
6200254397, 978-6200254399
