On January 1, 2019, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $148,500. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Calro, Egypt. Cayce accounts for its Investment in Simbel under the Initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. The following are the 2020 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (E), respectively. Cayce Corporation $ 241,600 (114,600) (24,200) (9,600) (28,800) 20,900 Simbel Company EE 919,700 (482,500) (84,400) (51,200) (66, 800) $ 85,300 Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend income-from Simbel Gain on sale of building, 10/1/29 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 56, eee EE 290, 80e EE 153,800 290,800 (76, 000) EE 368,600 EE 174,600 354,200 $ 344, eee 85,300 (50,000) $ 379, 300 $ 113,400 100,600 30, see 148,500 481,200 $ 873,700 $ 71,200 176,00 146, eee 101,200 379, 3ee $ 873,700 481, eee 11,889,800 LE 61,8ee 147,800 266, eee 165,600 368,600 [E1,899,800 Additional Information . During 2019, the first year of Joint operation, Simbel reported Income of E 189,000 earned evenly throughout the year. Simbel declared a dividend of E 35,200 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 12,600 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 0.29 0.288 0.280 8.275 8.273 0.274 0.270 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 Dollars Account Cayce Dollars Simbel Dollars Debit Credit 0 0 0 0 0 Sales Cost of goods sold Salary expense Rent expense Other expenses Dividend incomefrom 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 0 0 0
