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 2,400 LCU on December 31, 20X2, and 2,200 LCU on December 31, 20X1) Inventories, at cost LCU 36,000 LCU 41,000 74,000 69,000 Property, Plant and Equipment (net of allowance for accumulated depreciation of 37,000 LCU on December 31, 20X2, and 15,000 LCU on December 31, 20x1) Long-Term Debt Common Stock, authorized 30,000 shares, par value 10 LCU per share; issued and outstanding, 15,000 shares on December 31, 20x2, and December 31, 20X1 175,800 110,000 162,000 130,000 150,000 150,000 Additional Information: 1. Exchange rates are as follows: LCU January 1, 20X1-July 31, 20X1 August 1, 20X1-October 31, 20X1 November 1, 20X1-June 30, 20X2 July 1, 20X2-December 31, 20X2 Average monthly rate for 20X1 Average monthly rate for 20X2 2.0 1 1.8 = 1.7 = 1.5 1.9 = 1.6 1 2. An analysis of the accounts receivable balance is as follows: 20X2 20X1 Accounts Receivable: Balance at beginning of year Sales (42,000 LCU per month in 20X2 and 37,000 LCU per month in 20X1) LCU 38,200 LCU 444,000 504,000 (495,300) (3,500) Collections (404,700) Write-offs (May 20X2 and December 20X1) (1,100 Balance at end of year 38,200 LCU 43,400 LCU 20X2 20X1 Allowance for Uncollectible Accounts: Balance at beginning of year LCU 2,200 LCU 3,300 Provision for uncollectible accounts 3,700 (3,500) (1,100) Write-offs (May 20X2 and December 20x1) LCU 2,200 Balance at end of year LCU 2,400 3. An analysis of inventories, for which the first-in, first-out inventory method is used, follows: 20X2 20X1 LCU 69,000 Inventory at beginning of year Purchases (June 20X2 and June 20X1) 345,000 LCU414,000 (74,000) LCU340,000 LCU385,000 LCU385,000 Goods available for sale Inventory at end of year Cost of goods sold (69,000) LCU316,000 4. On January 1, 20X1, Kiner's foreign subsidiary purchased land for 27,000 LCU and plant and equipment for 150,000 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 year's depreciation is taken in the year of purchase. 5. On January 15, 20X1, 7 percent bonds with a face value of 130,000 LCU were issued. These bonds mature on January 15, 2OX7, 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 translating the selected accounts into U.S. dollars as of December 31, 20X1, and December 31, 20X2, respectively, assuming that the local currency unit is the foreign subsidiary's functional currency. (Round your dollar amounts to nearest whole dollar.) KINER COMPANY'S FOREIGN SUBSIDIARY Translation of Selected Captions into United States Dollars December 31, 20X2, and December 31, 20X1 Indirect Balance Translated into in LCUS Exchange Rate U.S. Dollars December 31, 20X1: Accounts receivable (net) 36,000 1.7 LCU = $1 Inventories, at cost 69,000 1.7 LCU $1 Property, plant and equipment (net) 162,000 1.7 LCU = $1 130,000 1.7 LCU $1 Long-term debt 150,000 2.0 LCU = $1 Common stock December 31, 20X2: Accounts receivable (net) 41,000 1.5 LCU = $1 Inventories, at cost 74,000 1.5 LCU $1 Property, plant and equipment (net) 175,800 1.5 LCU = $1 110,000 1.5 LCU = $1 Long-term debt 150,000 2.0 LCU = $1 Common stock