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Incorporated amortizes the patent over 1 0 years. A trial balance translated to U . S . dollars for Salina Ranching is as follows: Salina
Incorporated amortizes the patent over years. A trial balance translated to U S dollars for Salina Ranching is as follows:
Salina Ranching Company
Trial Balance Translated
December X
Australian Dollars Exchanges Rate US Dollars
Cash A$ $
Accounts Receivable net
Inventory
Plant and Equipment
Cost of Goods Sold
Depreciation Expense
Operating Expenses
Interest Expense
Dividends Declared
Total $
Accumulated other comprehensive
Income Translation Adjustmentdebit
Total Debits A$ $
Accumulated Depreciation A$ $
Accounts Payable
Payable to Palermo Incorporated
Interest Payable
Bonds Payable
Premium on Bonds
Common Stock
Retained Earnings
Sales
Total Credits A$ A$
Assume that the Australian dollar A$ is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December X trial balance for Palermo Incorporated follows. Use this translated trial balance for completing this problem.
Item Debit Credit
Cash $
Accounts Receivable net
Receivable from Salina Ranching
Inventory
Plant and Equipment
Investment in Salina Ranching
Cost of Goods Sold
Depreciation Expense
Operating Expenses
Interest Expense
Dividends Declared
Translation Adjustment
Accumulated Depreciation $
Accounts Payable
Interest Payable
Common Stock
Retained Earnings, January X
Sales
Income from Subsidiary
Total $ $
Prepare a comprehensive consolidation worksheet as of December X
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