needs classification as well

P 14-5 Remeasurement worksheet Par of Chicago acquired all the outstanding capital stock of Sar of London on January 1, 2016, for $1,120,000, The exchange rate for British pounds was $1.40 and Sar's stockholders' equity was 800,000, consisting of 500,000 capital stock and 300,000 retained earnings. The functional currency of Sar is the U.S. dollar. Exchange rates for British pounds for 2016 are as follows: Current rate January 1, 2016 $1,40 Current rate December 31, 2016 1.50 Average exchange rate for 2016 1.55 Exchange rate for dividends 1.54 Sar's cost of goods sold consists of 200,000 inventory on hand at January 1, 2016, and pur- chases of 600,000 less 150,000 inventory on hand at December 31, 2016, that was acquired at an exchange rate of $1.68 All of Sar's plant assets were on hand when Par acquired Sar, and Sar's other expenses were paid in cash or relate to accounts payable. Sar's adjusted trial balance at December 31, 2016, in British pounds is as follows: Debits Cash 50,000 Accounts receivable 200.000 Short-term note receivable 50,000 Inventories 150.000 Land 300,000 Buildings.net 400,000 Equipment-net 500,000 Cost of sales 650,000 Depreciation expense 200.000 Other expenses 400,000 Dividends 100,000 3,000,000 Credits Accounts payable Bonds payable -10% Bond interest payable Capital stock Retained earnings Sales 180,000 500,000 20,000 500,000 300,000 1,500,000 3,000,000 REQUIRED: Prepare a remeasurement worksheet to restate Sar's adjusted trial balance at December 31. 2016, in U.S. dollars. US Dollars 5 P14-5 5 7 8 9 10 75,000.00 11 #VALUE! Euros Exchange Rate Classification Debits Cash 50,000 1.5 C Accts Rec-net 200,000 Short-term note recel 50,000 Inventories 150,000 Land 300,000 Buildings - net 400,000 Equipment - net 500,000 Costs of sales 650,000 Computed Depreciation expense 200,000 Other Expenses 400,000 Dividends 100,000 Exchange loss on remeasurement 3,000,000 Credits Accounts payable 180,000 Bond payable - 10% 500,000 Bond interest payable 20,000 Capital stock 500,000 Retained earnings 300,000 Sales 1,500,000 Homework Hint: The Exch 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 #VALUE! 1.4 420,000.00 2,250,000.00 3,000,000 2,670,000.00 Check figure $4,495,000