Munich Bratwerst Company
Balance sheet
12/31/2016 in EU's
Cash	10,000
Accts rec	40,000
inventory	50,000
equip net	100,000
land	400,000
tot asset	600,000
accts pay	50,000
comm st	400,000
ret earn	150,000
Income statement
For the year 2016
sales	1,500,000
cogs	800,000
gross pro	700,000
deprec exp	100,000
oper exp	510,000
net income	90,000
dividends of 40,000 eu paid 6/30 when 2eu=$1
december 31, 2016 4eu =$1
average 2016 3 eu =$1
June 1 1998 when stock acquired 1eu =$1
October 1, 1998 when equip purchased 1.5eu =$1
December 31, 2000 when land purchased 2eu=$1
retained earnings 1-1-16 $68,000
1) PREPARE A DOLLAR DENOMINATED: INCOME STATEMENT, BALANCE SHEET AND STATEMENT OF EQUITY IF THE DOLLAR IS THE FUNCTIONAL CURRENCY (TEMPORAL METHOD)
2) PREPARE A DOLLAR DENOMINATED: INCOME STATEMENT, BALANCE SHEET AND STATEMENT OF EQUITY IF THE EURO IS THE FUNCTIONAL CURRENCY (CURRENT RATE METHOD)