Question
I really need help with the answer Presented below are a number of items included in the financial statements of Wolfe Corporation, a foreign subsidiary
I really need help with the answer
Presented below are a number of items included in the financial statements of Wolfe Corporation, a foreign subsidiary of Garrett Company (a U.S. corporation). Garrets financial records are kept in FCs. Indicate how each of the items (1 17) would be computed when Wolfes financial statements are restated into U.S. dollars for purposes of consolidation. Use the code below:
C: FC amount multiplied by current exchange rate.
A: FC amount multiplied by average exchange rate.
H: FC amount multiplied by historical exchange rate(s)
N: None of the above (if you choose N, explain how the US $ amount is computed).
If functional currency is:
FC US $
1. ______ ______ Accounts Receivable.
2. ______ ______ Accounts Payable.
3. ______ ______ Advertising Expense.
4. ______ ______ Allowance for Doubtful Accounts.
5. ______ ______ Building.
6. ______ ______ Cash.
7. ______ ______ Common Stock.
8. ______ ______ Cost of Goods Sold.
9. ______ ______ Depreciation Expense.
10. ______ ______ Insurance Expense (expiration of Prepaid Insurance).
11. ______ ______ Interest Revenue.
12. ______ ______ Inventory (carried at lower of cost or market)
13. ______ ______ Land.
14. ______ ______ Notes Payable.
15. ______ ______ Patent Amortization Expense.
16. ______ ______ Retained Earnings.
17. ______ ______ Salaries Expense.
18. ______ ______ Unearned Rent.
19. ______ ______ Utilities Expense.
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