On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $132,300. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbels books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively.

Additional Information

• During 2019, the first year of joint operation, Simbel reported income of E 171,000 earned evenly throughout the year. Simbel declared a dividend of E 31,600 to Cayce on June 1 of that year. Simbel also declared the 2020 dividend on June 1.

• On December 9, 2020, Simbel classified a E 10,800 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2021.

• The exchange rates for 1 E are as follows:

January 1, 2019	$	0.300
June 1, 2019		0.290
Weighted average rate for 2019		0.288
December 31, 2019		0.280
June 1, 2020		0.275
October 1, 2020		0.273
Weighted average rate for 2020		0.274
December 31, 2020		0.270

Translate Simbels 2020 financial statements into U.S. dollars and prepare a consolidation worksheet for Cayce and its Egyptian subsidiary. Assume that the Egyptian pound is the subsidiarys functional currency.

Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Total liabilities and equities Cayce Corporation $ 212,800 (100, 200) (20,600) (7,800) (23,400) 15,950 B $ 76,750 $ 326, eee 76,750 (32, eee) $ 370,750 $ 111,600 98,800 30, see 132,300 423,600 $ 796,300 $ 64, eee 144,950 128, eee 88,600 370, 750 $ 796,300 Simbel Company EE 836,900 (439,300) (77,200) (47,600) (61,400) B 38, eee LE 249, 408 EE 139,400 249, 400 (58, eee) EE 330, see EE 154,800 314,6ee 463,00 EE 932,400 LE 56,400 142,400 248, see 154, Bee 330,800 EE 932,400 Translation Worksheet Consolidation Worksheet Prepare a Translation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Rou nearest whole number. Input all amounts as positive values.) CAYCE CORPORATION TRANSLATION WORKSHEET Egyptian Exchange Account U.S. Dollars Pounds Rate Sales 0 0 Cost of goods sold Salary expense Rent expense (adjusted) Other expenses Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings. 12/31/20 Cash and receivables Inventory Prepaid expenses (adjusted) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings. 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities 0 0 0 0 0 0 Translation Worksheet Consolidation Worksheet Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Input all amounts as positive values.) CAYCE CORPORATION Consolidation Worksheet Consolidation Entries Consolidated Balances Account Cayce Dollars Simbel Dollars Debit Credit Dollars Sales Cost of goods sold 0 0 Salary expense Rent expense Other expenses Dividend income from Simbel Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payabledue in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities 0 0 0 0 0 0 0 0 Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Total liabilities and equities Cayce Corporation $ 212,800 (100, 200) (20,600) (7,800) (23,400) 15,950 B $ 76,750 $ 326, eee 76,750 (32, eee) $ 370,750 $ 111,600 98,800 30, see 132,300 423,600 $ 796,300 $ 64, eee 144,950 128, eee 88,600 370, 750 $ 796,300 Simbel Company EE 836,900 (439,300) (77,200) (47,600) (61,400) B 38, eee LE 249, 408 EE 139,400 249, 400 (58, eee) EE 330, see EE 154,800 314,6ee 463,00 EE 932,400 LE 56,400 142,400 248, see 154, Bee 330,800 EE 932,400 Translation Worksheet Consolidation Worksheet Prepare a Translation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Rou nearest whole number. Input all amounts as positive values.) CAYCE CORPORATION TRANSLATION WORKSHEET Egyptian Exchange Account U.S. Dollars Pounds Rate Sales 0 0 Cost of goods sold Salary expense Rent expense (adjusted) Other expenses Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings. 12/31/20 Cash and receivables Inventory Prepaid expenses (adjusted) Property, plant, and equipment (net) Total assets Accounts payable Notes payable-due in 2023 Common stock Additional paid-in capital Retained earnings. 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities 0 0 0 0 0 0 Translation Worksheet Consolidation Worksheet Prepare a Consolidation worksheet. (Round "Exchange Rate" answers to 3 decimal places. Input all amounts as positive values.) CAYCE CORPORATION Consolidation Worksheet Consolidation Entries Consolidated Balances Account Cayce Dollars Simbel Dollars Debit Credit Dollars Sales Cost of goods sold 0 0 Salary expense Rent expense Other expenses Dividend income from Simbel Gain on sale of building. 10/1/20 Net income Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 Cash and receivables Inventory Prepaid expenses Investment in Simbel (initial value) Property, plant, and equipment (net) Total assets Accounts payable Notes payabledue in 2023 Common stock Additional paid-in capital Retained earnings, 12/31/20 Subtotal Cumulative translation adjustment Total liabilities and equities 0 0 0 0 0 0 0 0