Foreign Currency Financial P 14-3 Translation worksheet, parent accounting Plaquired all the outstanding capital stock of Soo of London on January 1, 2016. for $800.000, when the exchange rate for British pounds was $1.50 and Sco's stockholders' equity consisted of 400.000 capital stock and 100,000 retained camnings. Soo's functional currency is the British pound. Balance sheet accounts for Soo at Juary 1, 2016, in British pounds and U.S. dollars are summarized as follows British Exchange US. Pounds Rate Dollars Cach { $0.000 51.50 $ 75,000 Accounts rovelvalent 0.000 1.50 90.000 Imetores 40,000 1.50 60,000 Equipment 750,000 1.50 1.125.000 0 000 SI 150.000 Accumulated depreciation 250,000 $1.50 5375.000 Accounts payable 150,000 1.50 225.000 Capital stock 400,000 1.50 600.000 Retained camins 100.000 1.50 150.000 0.000 SI 350.000 Exchange rates for 2016 are as follows Current exchange rate, January 1, 2016 Average exchange rate for 2016 Rate for cash dividends Current exchange rate, December 31, 2016 SI SO 1.53 1.62 1.55 So's adjusted trial balance in British pounds at December 31, 2016, is as follows: Debit Cash C20,000 Accounts receivable- 70,000 Inventories 50.000 Equipement 800,000 Cost of sales 350.000 Depreciation expense 80,000 Operating expenses 100,000 Dividends 30 000 $1.500.000 Credits Accumulated depreciation 300,000 Accounts payable 70,000 Capital stock 400.000 Retained earninp 100,000 Sales 600.000 EI SOOOOO REQUIRED 1. Prepare a translation worksheet to convert Soo's December 31, 2016, adjusted trial balance into U.S. dellan 2. Prepare jumal entries only's books to account for the investment in Soo for 2016, 1 Directly compute the translation pain or loss. | * 1 - 2016 ,11 Novan *** + Expert Q&A Expert Answer Pooja Varshney. about 1 hours later 1- The solution to the table is given below:- 31 100 BODO 2020 11 TOTAL 0 0 000 1 5 TOTAL Net banget Hence, the net exchange loss comes out 5850 to be 2- The solution to the table is given below:- Part Le Race Aspe Balear Bar As Per Babel Tube Gales) 21.500.00 10 100 000 TOTAL S 11100005 30 15000S S 5 5690 ODS 760000 00003 CC Cewery TOTAL $ I DOS 36000015 5 3 3. + Expert Q&A + 3. Accounts Payable: These are the liabilities of the companies which are to be met at a future date by the outflow of resources and come into existence when the entity avails services of third parties or purchases goods from them. Accounts receivable: The term accounts receivable can be defined as the amount of money that a business has yet not received from its clients. When a business provides any service or product on credit for which payment is due but yet not received, the cash due to the business becomes an account receivable. Accounts receivable is a major aspect of cash flow. It shows how a business is making its sales. Journal Entry This is the primary recording of any transaction which is entered in the financial accounting. First of all, every transaction is put into a journal entry and from there it is posted to different accounts. Journal entry forms the basis of accounting. If a journal entry is wrong then financial books cannot provide a correct picture of the financials of the entity Pass the journal entry to record collection from accounts receivable by using the table given below:- 2-51 AM Foreign Currency Financial P 14-3 Translation worksheet, parent accounting Plaquired all the outstanding capital stock of Soo of London on January 1, 2016. for $800.000, when the exchange rate for British pounds was $1.50 and Sco's stockholders' equity consisted of 400.000 capital stock and 100,000 retained camnings. Soo's functional currency is the British pound. Balance sheet accounts for Soo at Juary 1, 2016, in British pounds and U.S. dollars are summarized as follows British Exchange US. Pounds Rate Dollars Cach { $0.000 51.50 $ 75,000 Accounts rovelvalent 0.000 1.50 90.000 Imetores 40,000 1.50 60,000 Equipment 750,000 1.50 1.125.000 0 000 SI 150.000 Accumulated depreciation 250,000 $1.50 5375.000 Accounts payable 150,000 1.50 225.000 Capital stock 400,000 1.50 600.000 Retained camins 100.000 1.50 150.000 0.000 SI 350.000 Exchange rates for 2016 are as follows Current exchange rate, January 1, 2016 Average exchange rate for 2016 Rate for cash dividends Current exchange rate, December 31, 2016 SI SO 1.53 1.62 1.55 So's adjusted trial balance in British pounds at December 31, 2016, is as follows: Debit Cash C20,000 Accounts receivable- 70,000 Inventories 50.000 Equipement 800,000 Cost of sales 350.000 Depreciation expense 80,000 Operating expenses 100,000 Dividends 30 000 $1.500.000 Credits Accumulated depreciation 300,000 Accounts payable 70,000 Capital stock 400.000 Retained earninp 100,000 Sales 600.000 EI SOOOOO REQUIRED 1. Prepare a translation worksheet to convert Soo's December 31, 2016, adjusted trial balance into U.S. dellan 2. Prepare jumal entries only's books to account for the investment in Soo for 2016, 1 Directly compute the translation pain or loss. | * 1 - 2016 ,11 Novan *** + Expert Q&A Expert Answer Pooja Varshney. about 1 hours later 1- The solution to the table is given below:- 31 100 BODO 2020 11 TOTAL 0 0 000 1 5 TOTAL Net banget Hence, the net exchange loss comes out 5850 to be 2- The solution to the table is given below:- Part Le Race Aspe Balear Bar As Per Babel Tube Gales) 21.500.00 10 100 000 TOTAL S 11100005 30 15000S S 5 5690 ODS 760000 00003 CC Cewery TOTAL $ I DOS 36000015 5 3 3. + Expert Q&A + 3. Accounts Payable: These are the liabilities of the companies which are to be met at a future date by the outflow of resources and come into existence when the entity avails services of third parties or purchases goods from them. Accounts receivable: The term accounts receivable can be defined as the amount of money that a business has yet not received from its clients. When a business provides any service or product on credit for which payment is due but yet not received, the cash due to the business becomes an account receivable. Accounts receivable is a major aspect of cash flow. It shows how a business is making its sales. Journal Entry This is the primary recording of any transaction which is entered in the financial accounting. First of all, every transaction is put into a journal entry and from there it is posted to different accounts. Journal entry forms the basis of accounting. If a journal entry is wrong then financial books cannot provide a correct picture of the financials of the entity Pass the journal entry to record collection from accounts receivable by using the table given below:- 2-51 AM