Below is the balance sheet of US Amalgamated and its subsidiary, British Foods, LTD. The subsidiary is owned 100% by US Amalgamated, and their financials are in British pounds sterling. British Foods was purchased January 1, 2018. Because of light control of the subsidiary, the current rate method is used for translation.

You are to translate the subsidiary below, then record on US Amalgamate ds books the profit and dividends. You are to show the elimination entries and consolidated statements. Lastly, you must prove the cumulative translation adjustment. Lastly, you must prove the cumulative translation adjustment.

1. Record the profit and dividends on the books of Amalgamated here:
2. Prove the cumulative translation adjustment here:

British foods was purchased on Jan 1, 2018 at book value when net assets were 500,000 The cost was $750,000, as the exchange rate was $1.50 per 1.0 British pound sterling. On that date, British Foods had net monetary assets of 80,000 The exchange rate on December 31, 2018 is $1.60 per 1.0 British pound sterling, and the average rate for the year was $1.45 per 1.0 Bristish pound sterling. The dividend was also paid at $1.42 per 1.0 British pound sterling .

Dec 31, 2018 US Amalga. Dec 31, 2018 British Foods Translated British Foods Elimination Entries T. Consolidated Sales Expenses using funds Depreciation Income from Subsidiary Net Income S400,000.00 $250,000.00 80,000 20,000 100,000 100,000 $150,000.00 RE Jan 1, 2018 Dividends RE Dec 31, 2018 700,000 $300,000.00 5000 $50,000.00 $400.000.00 Cash Receivables Property (net) 100,000$100,000.00 200,000 500,000 150,000 400,000 Investment in BF Total Assets S650,000.00 Payables Common Stock Translation Adjustment Retained Earnings, Dec 31 Total Liab and Equity 76,000 $50,000.00 200,000 500,000 400,000 $650,000.00 Dec 31, 2018 US Amalga. Dec 31, 2018 British Foods Translated British Foods Elimination Entries T. Consolidated Sales Expenses using funds Depreciation Income from Subsidiary Net Income S400,000.00 $250,000.00 80,000 20,000 100,000 100,000 $150,000.00 RE Jan 1, 2018 Dividends RE Dec 31, 2018 700,000 $300,000.00 5000 $50,000.00 $400.000.00 Cash Receivables Property (net) 100,000$100,000.00 200,000 500,000 150,000 400,000 Investment in BF Total Assets S650,000.00 Payables Common Stock Translation Adjustment Retained Earnings, Dec 31 Total Liab and Equity 76,000 $50,000.00 200,000 500,000 400,000 $650,000.00