On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $129,600. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively. Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/17 Net income Retained earnings, 1/1/17 Net income Dividends Cayce Corporation $ 208,000 (97,800) (20,000) (7,500) (22,500) 15,125 Simbel Company E 823,100 (432,100) (76,000) (47,000) (60,500) 0 35,000 0 $ 75,325 $ 323,000 75,325 (29,000) Retained earnings, 12/31/17 $ 369,325 $ 111,300 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant & equipment (net) Total assets Accounts payable Notes payable-due in 2020 Common stock 98,500 30,000 129,600 414,000 $ 783,400 $ 62,800 139,775 125,000 E 242,500 E 137,000 242,500 (55,000) E 324,500 E 151,500 308,000 0 460,000 EE 919,500 55,500 141,500 245,000 Retained earnings, 12/31/17 86,500 369,325 153,000 324,500 Total liabilities and equities $ 783,400 EE 919,500 Additional paid-in capital Additional Information During 2016, the first year of joint operation, Simbel reported income of E 168,000 earned evenly throughout the year. Simbel declared a dividend of E 31,000 to Cayce on June 1 of that year. Simbel also declared the 2017 dividend on June 1. On December 9, 2017, Simbel classified a E 10,500 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2018. The exchange rates for 1 E are as follows: January 1, 2016 $ 0.300 June 1, 2016 0.290 Weighted average rate for 2016 0.288 December 31, 2016 0.280 June 1, 2017 0.275 October 1, 2017 0.273 Weighted average rate for 2017 0.274 December 31, 2017 0.270 Translate Simbel's 2017 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary's functional currency. Complete this question by entering your answers in the tabs below. Translation Consolidation Worksheet Worksheet Prepare a Translation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Round your "Dollars" answers to the nearest whole number. Amounts to be deducted and negative amounts should be indicated with a minus sign.) CAYCE CORPORATION TRANSLATION WORKSHEET Sales Account Cost of goods sold Salary expense Rent expense (adjusted) Other expenses Gain on sale of fixed asset, 10/1/17 Net income Retained earnings, 1/1/17 Egyptian Pounds Exchange Rate Dollars 0 0 Net income Dividends (39,394) Retained earnings, 12/31/17 0 (39,394) Cash and receivables Inventory Prepaid rent (adjusted) Property, plant & equipment Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 12/31/17 Subtotal 0 Total liabilities and equities 0 < Translation Worksheet 0 Consolidation Worksheet > Translate Simbel's 2017 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiary's functional currency. Complete this question by entering your answers in the tabs below. Translation Worksheet Consolidation Worksheet Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Amounts to be deducted and negative amounts should be indicated with a minus sign.) CAYCE CORPORATION Sales Cost of goods sold Salary expense Rent expense Other expenses Consolidation Worksheet Adjustments and Eliminations Account Cayce Dollars Simbel Debit Dollars Credit Consolidated Balances Dollars Dividend income Gain on sale of fixed asset, 10/1/17 Net income Retained earnings, 1/1/17 Net income Dividends 0 0 Retained earnings, 12/31/17 0 0 Cash and receivables Inventory Prepaid rent Investment Property, plant & equipment Total assets 0 0 0 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings, 12/31/17 Subtotal Total liabilities and equities 0 0 0 0 0 0 0 0 Translation Wadkobest