I need help with this homework problem please help
31 . Translation of financial statements and consolidation on of a foreign subsidiary ino amortization Of AAP Assume that your company owns a subsidiary operating in Great Britain . The subsidiary marman books in the British pound GBP ) as its functional currency Following are the subsidian 's firm Statements ( in GBP ) for the most recent year .(in GBP) (in GBP) (in GBP) me statement: 2,730,000 Balance sheet: Assets Statement of cash flows: 1.638,000) 382.200 Cash Net income.. (105.560 1.092,000 776,958 Accounts receivable Change in accounts receivable (709,800) Inventory. .. 633,360 Change in inventories. .. (1 35.590 wating expenses 382.200 813,540 Property, plant, and Change in current liabilities 77 168 equipment (PPE), net .. Net cash from operating activities 218.218 et . . . . . . Total assets. 1,504,776 statement of retained earnings: 3.728,634 (139,776 Buy Ret. earnings 1,433,250 Change in PPE, net 382.200 Liabilities and stockholders' equity Current liabilities. Net cash from investing activities. (139,776) wet income.. (38,220) ilities. . . . . . . .. . . . Long-term liabilities . . 463,008 midends . . . . . . . . . 1,078,896 Change in long-term debt. 179.816 FOY Ret. earnings , . . . 1,777,230 Common stock. . . . . . . . . . . . . . . 182,000 Dividends . .. (38,220) APIC . . Retained earnings . 227,500 Net cash from financing activities 1,777,230 Total liabilities and equity . . . . . 220,038 3,728,634 Net change in cash. 556.920 Beginning cash. . .. 776,958 Ending cash . . The relevant exchange rates for the $US value of the British pound (GBP) are as follows: BOY rate. . . $1.50 EOY rate. . . . . . Avg. rate . . . . . . . PPE purchase date rate . LTD borrowing date rate. . 1.55 Dividend rate Historical rate (Common stock and APIC) . $0.60 a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows from British pounds (GBP) into $US (assume that the BOY Retained Earnings for the subsidiary is $2,535,897). b.A Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $(17,474). What journal entry did the parent company make as a result of this computation? Following are selected financial statement accounts for the parent: Balance sheet: Income statement: $11,973,000 Assets $ 1,255.795 Cost of goods sold. . (8,381, 100) Cash . . . . Accounts receivable . 1,532,544 3,591,900 Gross profit. 584,766 Inventory. . . . . . . . 2.322,762 Equity income. (2,274,870) Equity investment. . . 3,747,165 Operating expenses . $1,901,796 Property, plant, and equipment (PPE), net. . 12.370,504 Net income . . $21,228,770 Statement of retained earnings: $10,311,600 Liabilities and stockholders' equity BOY retained earnings . . 1,901,796 Current liabilities. . 959,037 Long-term liabilities 650,000 Net income. . . (412,464) Dividends . $11,800,932 Common stock. 1.359,397 Ending retained earnings . APIC . .. .. 6.319.361 Retained earnings . . . . 11,800.932 Statement of accum. comp. income: $ (17,474) Cumulative translation adjustment. .. 140,043 BOY cumulative translation adjustment. . . . . . . $21,228,770 Current-year translation gain (loss). . . . . . . 157,517 . . . . . . EOY cumulative translation adjustment . . . . . . .. . . $ 140,043(in GBP) (in GBP) (in GBP) me statement: 2,730,000 Balance sheet: Assets Statement of cash flows: 1.638,000) 382.200 Cash Net income.. (105.560 1.092,000 776,958 Accounts receivable Change in accounts receivable (709,800) Inventory. .. 633,360 Change in inventories. .. (1 35.590 wating expenses 382.200 813,540 Property, plant, and Change in current liabilities 77 168 equipment (PPE), net .. Net cash from operating activities 218.218 et . . . . . . Total assets. 1,504,776 statement of retained earnings: 3.728,634 (139,776 Buy Ret. earnings 1,433,250 Change in PPE, net 382.200 Liabilities and stockholders' equity Current liabilities. Net cash from investing activities. (139,776) wet income.. (38,220) ilities. . . . . . . .. . . . Long-term liabilities . . 463,008 midends . . . . . . . . . 1,078,896 Change in long-term debt. 179.816 FOY Ret. earnings , . . . 1,777,230 Common stock. . . . . . . . . . . . . . . 182,000 Dividends . .. (38,220) APIC . . Retained earnings . 227,500 Net cash from financing activities 1,777,230 Total liabilities and equity . . . . . 220,038 3,728,634 Net change in cash. 556.920 Beginning cash. . .. 776,958 Ending cash . . The relevant exchange rates for the $US value of the British pound (GBP) are as follows: BOY rate. . . $1.50 EOY rate. . . . . . Avg. rate . . . . . . . PPE purchase date rate . LTD borrowing date rate. . 1.55 Dividend rate Historical rate (Common stock and APIC) . $0.60 a. Translate the subsidiary's income statement, statement of retained earnings, balance sheet, and statement of cash flows from British pounds (GBP) into $US (assume that the BOY Retained Earnings for the subsidiary is $2,535,897). b.A Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $(17,474). What journal entry did the parent company make as a result of this computation? Following are selected financial statement accounts for the parent: Balance sheet: Income statement: $11,973,000 Assets $ 1,255.795 Cost of goods sold. . (8,381, 100) Cash . . . . Accounts receivable . 1,532,544 3,591,900 Gross profit. 584,766 Inventory. . . . . . . . 2.322,762 Equity income. (2,274,870) Equity investment. . . 3,747,165 Operating expenses . $1,901,796 Property, plant, and equipment (PPE), net. . 12.370,504 Net income . . $21,228,770 Statement of retained earnings: $10,311,600 Liabilities and stockholders' equity BOY retained earnings . . 1,901,796 Current liabilities. . 959,037 Long-term liabilities 650,000 Net income. . . (412,464) Dividends . $11,800,932 Common stock. 1.359,397 Ending retained earnings . APIC . .. .. 6.319.361 Retained earnings . . . . 11,800.932 Statement of accum. comp. income: $ (17,474) Cumulative translation adjustment. .. 140,043 BOY cumulative translation adjustment. . . . . . . $21,228,770 Current-year translation gain (loss). . . . . . . 157,517 . . . . . . EOY cumulative translation adjustment . . . . . . .. . . $ 140,043