Bellingham Corporation, a U.S. company, acquired a 100% interest in Kayno Manufacturing, a Japanese company, on December 31, 2017, when the exchange rate for the Japanese yen (JPY)) was 103.960. Kayno's functional currency is the Japanese Yen. Relevant exchange rates for JPY are: Japanese yen Information relevant to selected balance sheet items Current rate December 31,2018 101.94 1. Kayno's inventories were purchased evenly throughout the year. The 12/18/18 inventory was acquired when the exchange rate Current rate December 31, 2017 V 103.96 was JPY 103.881. Average rate for 2018 103.03 2. Kayno Manufacturing purchased the Plant & Equipment on the opening balance sheet in 2012 when the exchange rate was JPY March 31, 2018 102.34 98.153. On March 31, 2017, Kayno purchased JPY 1,500 in equipment. The equipment has a 15 year life with no salvage value. Rate when dividends were paid 103.75 KAYNO computes depreciation to the nearest month. 3. There have been no changes in Kayno's capital stock since Bellingham purchased its 100% interest on December 31, 2017 Kanyo Adjusted trial balance 4. Other operating expenses were incurred proportionately throughout 2018. December 31, December 31, 2017 REQUIRED: 2018 Prepare a unclassified balance sheet, multistep income statement and a retained earnings statement, in good form, for Kayno Manufacturing in U.S. dollars for the year ended December 31, 2018 assuming Kayno's functional currency is Accounts payable (4,300) (5,200) Accounts receivable the Japanese yen. Also, prepare a proof of the translation adjustment. 2,050 2,810 Accumulated depreciaiton (6,600) (8,325) Additional paid-in-capital (10,625) (10,625) Amortization expense 785 Bonds payable (10,000) (10,000) Cash 1,650 2,650 Common stock (4,000) (4,000) Cost of goods sold 9,500 Depreciation expense 1,725 Discount on bonds payable 250 200 Dividends 1,250 Inventor (at FIFO cost) 3,590 5,220 Other operating expenses Patent 925 Patent 7,850 7,065 Plant& equipment 24,750 26,250 Retained earnings (4,615) (4,615) Sales (15,615) Bellingham Corporation, a U.S. company, acquired a 100% interest in Kayno Manufacturing, a Japanese company, on December 31, 2017, when the exchange rate for the Japanese yen (JPY)) was 103.960. Kayno's functional currency is the Japanese Yen. Relevant exchange rates for JPY are: Japanese yen Information relevant to selected balance sheet items Current rate December 31,2018 101.94 1. Kayno's inventories were purchased evenly throughout the year. The 12/18/18 inventory was acquired when the exchange rate Current rate December 31, 2017 V 103.96 was JPY 103.881. Average rate for 2018 103.03 2. Kayno Manufacturing purchased the Plant & Equipment on the opening balance sheet in 2012 when the exchange rate was JPY March 31, 2018 102.34 98.153. On March 31, 2017, Kayno purchased JPY 1,500 in equipment. The equipment has a 15 year life with no salvage value. Rate when dividends were paid 103.75 KAYNO computes depreciation to the nearest month. 3. There have been no changes in Kayno's capital stock since Bellingham purchased its 100% interest on December 31, 2017 Kanyo Adjusted trial balance 4. Other operating expenses were incurred proportionately throughout 2018. December 31, December 31, 2017 REQUIRED: 2018 Prepare a unclassified balance sheet, multistep income statement and a retained earnings statement, in good form, for Kayno Manufacturing in U.S. dollars for the year ended December 31, 2018 assuming Kayno's functional currency is Accounts payable (4,300) (5,200) Accounts receivable the Japanese yen. Also, prepare a proof of the translation adjustment. 2,050 2,810 Accumulated depreciaiton (6,600) (8,325) Additional paid-in-capital (10,625) (10,625) Amortization expense 785 Bonds payable (10,000) (10,000) Cash 1,650 2,650 Common stock (4,000) (4,000) Cost of goods sold 9,500 Depreciation expense 1,725 Discount on bonds payable 250 200 Dividends 1,250 Inventor (at FIFO cost) 3,590 5,220 Other operating expenses Patent 925 Patent 7,850 7,065 Plant& equipment 24,750 26,250 Retained earnings (4,615) (4,615) Sales (15,615)