On January 1, 20X1, Kiner Company formed a foreign subsidiary that issued all of its currently outstanding common stock on that date. Selected accounts from the balance sheets, all of which are shown in local currency units, are as follows: December 31 20X2 20X1 Accounts Receivable (net of allowance for uncollectible accounts of 2,000 LCU on December 31, 20X2, and 1,800 LCU on December 31, 20X1) LCU 37,000 LCU 32,000 Inventories, at cost 67,000 62,000 Property, Plant & Equipment (net of allowance for accumulated depreciation of 31,200 LCU on December 31, 20X2, and 14,000 LCU on December 31, 20X1) 165,800 151,000 Long-Term Debt 90,000 110,000 Common Stock, authorized 25,000 shares, par value 10 LCU per share; issued and outstanding, 12,500 shares on December 31, 20X2, and December 31, 20X1 125,000 125,000 Additional Information: Exchange rates are as follows: LCU $ January 1, 20X1July 31, 20X1 2.0 = 1 August 1, 20X1October 31, 20X1 1.8 = 1 November 1, 20X1June 30, 20X2 1.7 = 1 July 1, 20X2December 31, 20X2 1.5 = 1 Average monthly rate for 20X1 1.9 = 1 Average monthly rate for 20X2 1.6 = 1 An analysis of the accounts receivable balance is as follows: 20X2 20X1 Accounts Receivable: Balance at beginning of year LCU 33,800 Sales (41,000 LCU per month in 20X2 and 36,000 LCU per month in 20X1) 492,000 LCU 432,000 Collections (483,500 ) (396,900 ) Write-offs (May 20X2 and December 20X1) (3,300 ) (1,300 ) Balance at end of year LCU 39,000 LCU 33,800 20X2 20X1 Allowance for Uncollectible Accounts: Balance at beginning of year LCU 1,800 Provision for uncollectible accounts 3,500 LCU 3,100 Write-offs (May 20X2 and December 20X1) (3,300 ) (1,300 ) Balance at end of year LCU 2,000 LCU 1,800 An analysis of inventories, for which the first-in, first-out inventory method is used, follows: 20X2 20X1 Inventory at beginning of year LCU 62,000 Purchases (June 20X2 and June 20X1) 330,000 LCU 370,000 Goods available for sale LCU 392,000 LCU 370,000 Inventory at end of year (67,000 ) (62,000 ) Cost of goods sold LCU 325,000 LCU 308,000 On January 1, 20X1, Kiners foreign subsidiary purchased land for 25,000 LCU and plant and equipment for 140,000 LCU. On July 4, 20X2, additional equipment was purchased for 32,000 LCU. Plant and equipment is being depreciated on a straight-line basis over a 10-year period with no residual value. A full years depreciation is taken in the year of purchase. On January 15, 20X1, 7 percent bonds with a face value of 110,000 LCU were issued. These bonds mature on January 15, 20X7, and the interest is paid semiannually on July 15 and January 15. The first interest payment was made on July 15, 20X1. Required: Prepare a schedule remeasuring the selected accounts into U.S. dollars for December 31, 20X1, and December 31, 20X2, respectively, assuming the U.S. dollar is the functional currency for the foreign subsidiary. The schedule should be prepared using the following form: (Round your dollar amounts to nearest whole dollar.) Next Visit question mapQuestion 6 of 8 Total 6 of 8 Prev

KINER COMPANY'S FOREIGN SUBSIDIARY
Remeasurement of Selected Captions into United States Dollars
December 31, 20X2, and December 31, 20X1
	Balance in LCUs	Indirect Exchange Rate	Remeasured into U.S. Dollars
December 31, 20X1:
Accounts receivable (net)	32,000
Inventories, at cost	62,000
Property, plant, and equipment (net)	151,000
Long-term debt	110,000
Common stock	125,000
December 31, 20X2:
Accounts Receivable (net)	37,000
Inventories, at cost	67,000
Property, plant, and equipment (net)	165,800
Long-term debt	90,000
Common stock	125,000