ID Paste BIU Merge & 17 x & fix B C D E Exchange Rate U.S. $ E (800,000) 420,000 74,000 59,000 (30,000) (133,000) Fm. Sch. One Above 50,000 3 Student Name: 4. Problem 10-36 (P.486: Hoyle et al p.530) 5 Step One - Translation Worksheet 6 7 8 Sales 9 Cost of goods sold 10 Salary expense 11 Rent expense (adjusted) 12 Other expenses 13 Gain on sale of fixed asset, 10/1/20 14 Net income 15 16 Retained earnings, 1/1/20 17 Net income 18 Dividends paid 19 Retained earnings, 12/31/20 20 21 Cash and receivables 22 Inventory 23 Prepaid expense (adjusted) 24 Fixed assets (net) 25 Total assets 26 27 Accounts payable 28 Notes payable 29 Common stock 30 Additional paid-in capital 31 Retained earnings, 12/31/20 32 Subtotal 33 Cumulative translation adjustment 34 Total 35 36 37 Sheet2 Sheeta Ready 146,000 297,000 455,000 (54,000) (140,000) (240,000) (150,000) Above Fm. Sch. Two Sheet1 LO Paste BIU v GA ===== = 5 Merge 3 17 X A B B D E U.S. $ 37 38 Schedule One-Translation of 1/1/20 Retained Earnings 39 40 Exchange 41 LE Rate 42 Retained earnings, 1/1/19 43 Net income, 2019 44 Dividends, 6/1/19 45 Retained earnings, 12/31/19 46 47 48 Schedule Two-Cumulative Translation Adjustment at 12/31/20 49 50 Exchange 51 E Rate 52 Net assets, 1/1/19 53 Net income, 2019 54 Dividends, 6/1/19 55 Net assets, 12/31/19 U.S. $ 56 Above 57 Net assets, 12/31/19 at 58 current exchange rate 59 Translation adjustment, 2019 60 (negative) 61 Net assets, 1/1/20 62 Net income, 2020 63 Dividends, 6/1/20 64 Net assets, 12/31/20 65 66 Net assets. 12/31/20 at 67 current exchange rate 68 Translation adjustment, 2020 69 Cumulative translation adjustment, 12/31/20 (negative) 70 Sheet1 Shoot Sheets + Roady Gm C Save EC-F21-ch10 me Insert Draw Page Layout Formulas Data Review View Tell me 10 == 29 Wrap Text General OL Paste B IU O A Merge & Center $ - % x x A B D E F G H Consolidation Worksheet For Year Ending December 31, 2020 Simbol Dollars Adjustments and Eliminations Debit Credit Consolidated Balances Cayco Dollars (200,000) 93,800 19.000 7,000 21,000 (13.750) (72,950) 8 7 8 19 30 Accounts 31 Sales 82 Cost of goods sold 83 Salary expense 84 Rent expense 85 Other expenses 86 Dividend Income 87 Gain, 10/1/20 88 Net Income 89 90 Retained earings, 1/1/20 91 Net Income 92 Dividends paid 93 Retained earings, 12/31/20 94 95 Cash and receivables 96 Inventory 97 Prepaid expense 98 Investment 99 Fixed assets 100 Total assets 101 102 Accounts payable 103 Notes payable 104 Common stock 105 Additional paid in capital 106 Retained earings, 12/31/20 107 Subtotal 108 Cumulative translation adjustment 109 Total liabilities and equity 110 Sheet Sheet2 (318,000) 72,950) 24,000 366.950) 110.750 98.000 30,000 126,000 398,000 782,750 (60,800) (132,0001 (120,000) (83.000) (366,950) (762.750 Sheets + Hint: The following consolidation entry may be needed. Entry E Cumulative translation adjustment 900 Property, plant & equipment (revaluation) 900 To revalue (write-down) the excess of acquisition consideration over book value for the change in exchange rate since the date of acquisition with the counterpart recognized in the consolidated cumulative translation adjustment. The revaluation of "excess" is calculated as follows: Excess of acquisition consideration over book value U.S. dollar equivalent at 12/31/20 EE30,000 $.27 - $8,100 U.S. dollar equivalent at 1/1/20 EE30,000 x $.30 9.000 Cumulative translation adjustment related to excess, 12/31/20 (negative) $(900) g ID Paste BIU Merge & 17 x & fix B C D E Exchange Rate U.S. $ E (800,000) 420,000 74,000 59,000 (30,000) (133,000) Fm. Sch. One Above 50,000 3 Student Name: 4. Problem 10-36 (P.486: Hoyle et al p.530) 5 Step One - Translation Worksheet 6 7 8 Sales 9 Cost of goods sold 10 Salary expense 11 Rent expense (adjusted) 12 Other expenses 13 Gain on sale of fixed asset, 10/1/20 14 Net income 15 16 Retained earnings, 1/1/20 17 Net income 18 Dividends paid 19 Retained earnings, 12/31/20 20 21 Cash and receivables 22 Inventory 23 Prepaid expense (adjusted) 24 Fixed assets (net) 25 Total assets 26 27 Accounts payable 28 Notes payable 29 Common stock 30 Additional paid-in capital 31 Retained earnings, 12/31/20 32 Subtotal 33 Cumulative translation adjustment 34 Total 35 36 37 Sheet2 Sheeta Ready 146,000 297,000 455,000 (54,000) (140,000) (240,000) (150,000) Above Fm. Sch. Two Sheet1 LO Paste BIU v GA ===== = 5 Merge 3 17 X A B B D E U.S. $ 37 38 Schedule One-Translation of 1/1/20 Retained Earnings 39 40 Exchange 41 LE Rate 42 Retained earnings, 1/1/19 43 Net income, 2019 44 Dividends, 6/1/19 45 Retained earnings, 12/31/19 46 47 48 Schedule Two-Cumulative Translation Adjustment at 12/31/20 49 50 Exchange 51 E Rate 52 Net assets, 1/1/19 53 Net income, 2019 54 Dividends, 6/1/19 55 Net assets, 12/31/19 U.S. $ 56 Above 57 Net assets, 12/31/19 at 58 current exchange rate 59 Translation adjustment, 2019 60 (negative) 61 Net assets, 1/1/20 62 Net income, 2020 63 Dividends, 6/1/20 64 Net assets, 12/31/20 65 66 Net assets. 12/31/20 at 67 current exchange rate 68 Translation adjustment, 2020 69 Cumulative translation adjustment, 12/31/20 (negative) 70 Sheet1 Shoot Sheets + Roady Gm C Save EC-F21-ch10 me Insert Draw Page Layout Formulas Data Review View Tell me 10 == 29 Wrap Text General OL Paste B IU O A Merge & Center $ - % x x A B D E F G H Consolidation Worksheet For Year Ending December 31, 2020 Simbol Dollars Adjustments and Eliminations Debit Credit Consolidated Balances Cayco Dollars (200,000) 93,800 19.000 7,000 21,000 (13.750) (72,950) 8 7 8 19 30 Accounts 31 Sales 82 Cost of goods sold 83 Salary expense 84 Rent expense 85 Other expenses 86 Dividend Income 87 Gain, 10/1/20 88 Net Income 89 90 Retained earings, 1/1/20 91 Net Income 92 Dividends paid 93 Retained earings, 12/31/20 94 95 Cash and receivables 96 Inventory 97 Prepaid expense 98 Investment 99 Fixed assets 100 Total assets 101 102 Accounts payable 103 Notes payable 104 Common stock 105 Additional paid in capital 106 Retained earings, 12/31/20 107 Subtotal 108 Cumulative translation adjustment 109 Total liabilities and equity 110 Sheet Sheet2 (318,000) 72,950) 24,000 366.950) 110.750 98.000 30,000 126,000 398,000 782,750 (60,800) (132,0001 (120,000) (83.000) (366,950) (762.750 Sheets + Hint: The following consolidation entry may be needed. Entry E Cumulative translation adjustment 900 Property, plant & equipment (revaluation) 900 To revalue (write-down) the excess of acquisition consideration over book value for the change in exchange rate since the date of acquisition with the counterpart recognized in the consolidated cumulative translation adjustment. The revaluation of "excess" is calculated as follows: Excess of acquisition consideration over book value U.S. dollar equivalent at 12/31/20 EE30,000 $.27 - $8,100 U.S. dollar equivalent at 1/1/20 EE30,000 x $.30 9.000 Cumulative translation adjustment related to excess, 12/31/20 (negative) $(900) g