AUS Company, on January 2, 2018, purchased a 100% interest in a subdivision located in Spain. Sales were carned and operating expenses were incurred evenly during the year. Exchange rates for the euro at various dates are: 1.202 1.208 1.198 January 2, 2018 December 31, 2018 Average for 2018 Dec 10, 2018, dividends declared & paid June 30, 2015 1.185 1.116 Notes: Read carefully and follow strictly so that Bb can grade you correctly! 1. Use comma in numbers, one thousand is 1.000, not 1000. Round to the nearest dollar: 1,000.45 should be 1,000, and 1,000.55 should be 1,001, no decimal points. No sign. 2. Use parenthesis() for expenses, accumulated depreciation, dividends, and G/L or adjustments only! Required Translate the year-end financial statements of the foreign subsidiary using the temporal method (Round numbers to the nearest dollar). Translation of Financial Statements to U.S. Dollars For Year Ended December 31, 2018 Balance Sheets Dec. 31. Exchange 2018 Rate U.S. Dollars $ Cash 295,000 $ Accounts receivable 385,000 $ Plant and equipment (net) (purchased 6/30/2015) 590,000 $ Land (purchased 6/30/2015) 355.000 $ Total Assets 1.625.000 $ Accounts payable 202,000 $ Long-term notes payable (issued 6/30/2015) 507,000 $ Common stock (issued 6/30/2015) 90,000 $ Retained earnings 826,000 $ Total Liabilities & Equity 1.625.000 Income Statement $ Revenues 874,000 $ Depreciation (35,000) $ Operating exp, excld. Depreciation (553,000) $ Translation G/L $ Net income 286,000 Statement of Retained Earnings $ Retained earnings, beginning of year 725,000 $ Net income 286.000 $ 1,011,000 $ Dividends declared and paid (185,000) $ Ending retained earnings 826.000 AUS Company, on January 2, 2018, purchased a 100% interest in a subdivision located in Spain. Sales were carned and operating expenses were incurred evenly during the year. Exchange rates for the euro at various dates are: 1.202 1.208 1.198 January 2, 2018 December 31, 2018 Average for 2018 Dec 10, 2018, dividends declared & paid June 30, 2015 1.185 1.116 Notes: Read carefully and follow strictly so that Bb can grade you correctly! 1. Use comma in numbers, one thousand is 1.000, not 1000. Round to the nearest dollar: 1,000.45 should be 1,000, and 1,000.55 should be 1,001, no decimal points. No sign. 2. Use parenthesis() for expenses, accumulated depreciation, dividends, and G/L or adjustments only! Required Translate the year-end financial statements of the foreign subsidiary using the temporal method (Round numbers to the nearest dollar). Translation of Financial Statements to U.S. Dollars For Year Ended December 31, 2018 Balance Sheets Dec. 31. Exchange 2018 Rate U.S. Dollars $ Cash 295,000 $ Accounts receivable 385,000 $ Plant and equipment (net) (purchased 6/30/2015) 590,000 $ Land (purchased 6/30/2015) 355.000 $ Total Assets 1.625.000 $ Accounts payable 202,000 $ Long-term notes payable (issued 6/30/2015) 507,000 $ Common stock (issued 6/30/2015) 90,000 $ Retained earnings 826,000 $ Total Liabilities & Equity 1.625.000 Income Statement $ Revenues 874,000 $ Depreciation (35,000) $ Operating exp, excld. Depreciation (553,000) $ Translation G/L $ Net income 286,000 Statement of Retained Earnings $ Retained earnings, beginning of year 725,000 $ Net income 286.000 $ 1,011,000 $ Dividends declared and paid (185,000) $ Ending retained earnings 826.000
