On Jan, 1 2014, Peter Corp (a U S based company) formed a new subsidiary in Saudi Arabia, Saeed Inc , with an initial investment of 30,000 SAR Assume Saeed Inc Purchases inventory evenly throughout 2014 The ending inventory is purchased Nov 30, 2014 Uses straight line depreciation on fixed assets Declares and pays dividends on Nov 30, 2014 Purchased the fixed assets on April 1, 2014 Uses SAR as the functional currency Exchange Rates are given Jan 1, 2014 0 260 April 1, 2014 0 255 Nov 30, 2014 0 240 Dec 31, 2014 0 238 REQUIRED Prepare a schedule to translate Saeeds financial statements on Dec 31, 2014 to U S dollars (2 Marks) Accounts SAR Cash 5000 Account Receivable 12000 Inventory 32000 Note Receivables 5000 Plant Equipment 70000 Cost of Goods sold 32000 Depreciation 2000 Other Expenses 18000 Dividends 16000 Total Debits 192000 ACC OC Translation Adjustment (Debit) Adjusted Total Credit Accumulated Depreciation 2000 Account Payable 12000 Bonds Payable 36000 Mortgage Payable 46000 Common Stock 30000 Sales 66000 Total Credits 192000

Question

On Jan, 1 2014, Peter Corp  (a U S  based company) formed a new subsidiary in Saudi Arabia, Saeed Inc , with an initial investment of 30,000 SAR  Assume Saeed Inc  Purchases inventory evenly throughout 2014  The ending inventory is purchased Nov  30, 2014  Uses straight line depreciation on fixed assets  Declares and pays dividends on Nov  30, 2014  Purchased the fixed assets on April 1, 2014  Uses SAR as the functional currency  Exchange Rates are given  Jan 1, 2014 0 260 April 1, 2014 0 255 Nov  30, 2014 0 240 Dec  31, 2014 0 238 REQUIRED Prepare a schedule to translate Saeeds financial statements on Dec  31, 2014 to U S  dollars  (2 Marks) Accounts SAR Cash 5000 Account Receivable 12000 Inventory 32000 Note Receivables 5000 Plant   Equipment 70000 Cost of Goods sold 32000 Depreciation 2000 Other Expenses 18000 Dividends 16000 Total Debits 192000 ACC  OC Translation Adjustment (Debit) Adjusted Total Credit Accumulated Depreciation 2000 Account Payable 12000 Bonds Payable 36000 Mortgage Payable 46000 Common Stock 30000 Sales 66000 Total Credits 192000

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On Jan, 1 2014, Peter Corp. (a U.S. based company) formed a new subsidiary in Saudi Arabia, Saeed Inc., with an initial investment of 30,000

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Accounts	SAR
Cash	5000
Account Receivable	12000
Inventory	32000
Note Receivables	5000
Plant & Equipment	70000
Cost of Goods sold	32000
Depreciation	2000
Other Expenses	18000
Dividends	16000
Total Debits	*192000*
ACC. OC Translation Adjustment (Debit)
Adjusted Total Credit

Accumulated Depreciation	2000
Account Payable	12000
Bonds Payable	36000
Mortgage Payable	46000
Common Stock	30000
Sales	66000
Total Credits	192000