On January 1, 2019. Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $141,300. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E). respectively. Cayce Corporation $ 228,800 (188, 200) (22,600) (8,800) (26,400 18,700 Simbel Company EE 882,900 (463,300) (81,200) (49,600) (64,400 $ 81,5ee $ 336, eee 81, see 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 48. eee LE 272,400 EE 147,400 272,488 (68,00) EE 351,899 EE 165,800 336,600 (42, eee) $ 375,500 $ 112,600 99,800 30,eee 141,300 455,600 $ 839,308 $ 68, eee 162,200 138,000 95,600 375,500 $ 839,300 473,800 EE 975,400 EE 59,400 145,400 258,888 160,800 351,800 EE 975,400 Additional Information . During 2019, the first year of joint operation. Simbel reported income of E 181.000 earned evenly throughout the year. Simbel declared a dividend of E 33.600 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 11.800 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 June 1, 2019 Weighted average rate for 2019 December 31, 2019 June 1, 2020 October 1, 2020 Weighted average rate for 2020 December 31, 2020 $ 0.300 0.290 0.288 8.280 0.275 8.273 0.274 2.270 Translate Simbel's 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 subsidiary's functional currency Teatest wole number. Input all amounts as positive values. CAYCE CORPORATION TRANSLATION WORKSHEET Account Egyptian Pounds Exchange U.S. Dollars Rate Sales 0 0 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 Consolidation Worksheet...> 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 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 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
