On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling Interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2014 Jan. 1 Dec. 31 Cash and Receivables 19,700 55,100 Net Property, Plant, and Equipment 40,000 36,300 Totals 59,700 91,400 Accounts and Notes Payable 29,500 31,600 Common Stock 19,700 19,700 Retained Earnings 10,500 40,100 Totals 59,700 91,400 GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2014 Revenues 75,000 Operating Expenses including Depreciation of 3,700 francs 30,300 Net Income 44,700 Dividends Declared and Paid 15,100 Increase in Retained Earnings 29,600 Direct exchange rates for Swiss franc are: January 1, 2014 December 31, 2014 Average for 2014 Dividend declaration and payment date Dollars per Franc $0.5987 0.5321 0.5654 0.5810 Translate the year-end balance sheet and Income statement of the foreign subsidiary using the current rate method of translation. (Round answers to decimal places, c.9.5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number eg -2,945 or parentheses e.g. (2,945).) Swiss Translation Francs Consolidated Income and Retained Earnings Statement Revenues .5654 Rate 75000 42405 Operating Expenses 30300 5654 17132 Net Income (Loss) 44700 25273 10500 Retained Eamings - 1/1 5987 6286 55200 31559 Dividends 15100 5810 8773 Net Income (Loss) 40100 22826 Balance Sheet Cash and Receivables 55100 5321 29319 Net Property. Plant, and 36300 15321 19315 Total 91400 48634 31600 Accounts and Notes Pay .5321 16814 19700 Common Stock 5987 11794 Balance Sheet 22826 Cash and Receivables 55100 .5321 29319 Net Property Plant, and 36300 .5321 19315 Total 91400 48634 0 0 Accounts and Notes Pay 31600 .5321 16814 Common Stock 19700 5982 11794 Retained Earnings 40100 28600 91400 0 Cumulative Translation Total 91400 48634 (b) Prepare a schedule to verify the translation adjustment. (Round answers to o decimal places, e.g. 5,125. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Swiss Francs Translation Rate SHOW LIST OF ACCOUNTS