On January 1, Year 4, P Company (a Canadian company) purchased 90% of S Company (located in a foreign country) at a cost of 15,690 foreign currency units (FC). The carrying amounts of S Company's net assets were equal to fair values on this date except for plant and equipment, which had a fair value of FC23,000, with a remaining useful life of 10 years. A goodwill impairment loss of FC100 occurred evenly throughout Year The following exchange rates were in effect during Year 4: Jan. 1 Average for year When ending inventory purchased Dec. 31 FC1 = $1.10 FC1 = $1.16 FC1 = $1.19 FC1 = $1.22 The statement of financial position of S Company on January 1, Year 4, is as follows: Plant and equipment (net) Inventory Monetary assets (current) S Company (FC) 21,000 9, 200 11,200 41,400 10,000 3,720 16,000 11,680 41,400 Ordinary shares Retained earnings Bonds payable (mature in eight years) Current liabilities The December 31, Year 4, financial statements of P Company (in $) and S Company (in FC) are shown below: S Company (FC) 18,900 STATEMENT OF FINANCIAL POSITION P Company ($) Plant and equipment (net) 69,600 Investment in s Company (at cost) 17,259 Inventory 34,800 Monetary assets (current) 32,552 154,211 Ordinary shares 34,800 Retained earnings 48,500 Bonds payable 47,100 Current monetary liabilities 23,811 154,211 12,200 19,400 50,500 10,000 9,820 16,000 14,680 50,500 INCOME STATEMENT Company (FC) 220,000 Sales Dividend income Cost of sales Other expenses (including depreciation) Profit P Companys ($) 416,500 4,612 (208,800) (180, 200) 32,112 (139,300) (70, 400) 10,300 Required: (a) Prepare the December 31, Year 4, consolidated financial statements, assuming that S Company's functional currency is: (Round your intermediate values to the nearest whole number. Round your answers to the nearest whole number. Input all amounts as positive values. Omit $ sign in your response.) (1) The Canadian dollar Consolidated Income Statement - Year 4 $ Attributable to: Shareholders of P Company Non-controlling interest Consolidated Retained Earnings Statement Year 4 Balance Jan. 1 Profit attributed to shareholder's of P Company Dividends Bal. Dec. 31 Consolidated Statement of Financial Position At Dec. 31, Year 4 Assets Liabilities and Equity (ii) The foreign currency unit Consolidated Income Statement - Year 4 Other comprehensive - unrealized exchange Profit attributable to: Shareholders of P Company Non-controlling interest Comprehensive income attributable to: Shareholders of P Company Non-controlling interest Consolidated Retained Earnings Statement Year 4 Balance Jan. 1 Profit attributed to shareholder's of P Company Dividends Balance Dec. 31 Consolidated Statement of Financial Position At Dec. 31, Year 4 Assets $ Liabilities and Equity (b) Now assume that P Company is a private company. It uses ASPE and has chosen to use the equity method to report its investment in s Company. Calculate the balance in the investment account at December 31, Year 4, assuming that S Company's functional currency is the Canadian dollar. (Round your intermediate values to the nearest whole number. Omit $ sign in your response.) Balance in investment account $0 (c) Prepare the consolidated financial statements using the worksheet approach for the two scenarios for functional currency. (Values in the first two columns and last column (the "parent", "subsidiary" and "consolidated" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Leave no cells blank - be certain to enter "O" wherever required. Round your intermediate values to the nearest whole number. Omit $ sign in your response.) CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER RAV COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, YEAR 4 Entries P Company s Company Consolidated Income Statements - Year 4 Sales Dividend income Cost of sales Other expenses Goodwill impairment loss Exchange loss Total expenses Profit Attributable to NCI Shareholders of P Company Total Retained Earnings Statements - for Year 4 Balance, January 1 Profit Dividends Balance, December 31 Consolidated Statement of Financial Position - at December 31, Year 4 Plant and equipment (net) Goodwill Investment in s Company (at cost) Inventory Monetary assets (current) Ordinary shares Retained earnings Non-controlling interest Bonds payable Current monetary liabilities Total CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER RAV COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, YEAR 4 Entries S Company Dr. Consolidated Income Statements - Year 4 P Company Sales Dividend income Gross profit Cost of sales Goodwill impairment loss expenses Other expenses Total expenses Profit Profit attributable to: NCI Shareholders of P Company Total Other comprehensive income - Unrealized exchange gain OCI attributable to: NCI Shareholders of P Company Total Comprehensive income attributable to: NCI Shareholders of P Company RETAINED EARNINGS STATEMENTS - for Year 4 Balance, January 1 Profit Dividends Balance, December 31 Accumulated Foreign Exchange Adjustment - Year 4 Balance, January 1 OCI for year A = = Il Balance, December 31 $ O $O . Total $0 $0 Consolidated Statement of Financial Position - at December 31, Year 4 Plant and equipment (net) Goodwill Investment in s Company (at cost) Inventory Monetary assets (current) Mill Hill Ordinary shares Retained earnings Accumulated foreign exchange adjustments Bonds payable Current monetary liabilities Non-controlling interest Total On January 1, Year 4, P Company (a Canadian company) purchased 90% of S Company (located in a foreign country) at a cost of 15,690 foreign currency units (FC). The carrying amounts of S Company's net assets were equal to fair values on this date except for plant and equipment, which had a fair value of FC23,000, with a remaining useful life of 10 years. A goodwill impairment loss of FC100 occurred evenly throughout Year The following exchange rates were in effect during Year 4: Jan. 1 Average for year When ending inventory purchased Dec. 31 FC1 = $1.10 FC1 = $1.16 FC1 = $1.19 FC1 = $1.22 The statement of financial position of S Company on January 1, Year 4, is as follows: Plant and equipment (net) Inventory Monetary assets (current) S Company (FC) 21,000 9, 200 11,200 41,400 10,000 3,720 16,000 11,680 41,400 Ordinary shares Retained earnings Bonds payable (mature in eight years) Current liabilities The December 31, Year 4, financial statements of P Company (in $) and S Company (in FC) are shown below: S Company (FC) 18,900 STATEMENT OF FINANCIAL POSITION P Company ($) Plant and equipment (net) 69,600 Investment in s Company (at cost) 17,259 Inventory 34,800 Monetary assets (current) 32,552 154,211 Ordinary shares 34,800 Retained earnings 48,500 Bonds payable 47,100 Current monetary liabilities 23,811 154,211 12,200 19,400 50,500 10,000 9,820 16,000 14,680 50,500 INCOME STATEMENT Company (FC) 220,000 Sales Dividend income Cost of sales Other expenses (including depreciation) Profit P Companys ($) 416,500 4,612 (208,800) (180, 200) 32,112 (139,300) (70, 400) 10,300 Required: (a) Prepare the December 31, Year 4, consolidated financial statements, assuming that S Company's functional currency is: (Round your intermediate values to the nearest whole number. Round your answers to the nearest whole number. Input all amounts as positive values. Omit $ sign in your response.) (1) The Canadian dollar Consolidated Income Statement - Year 4 $ Attributable to: Shareholders of P Company Non-controlling interest Consolidated Retained Earnings Statement Year 4 Balance Jan. 1 Profit attributed to shareholder's of P Company Dividends Bal. Dec. 31 Consolidated Statement of Financial Position At Dec. 31, Year 4 Assets Liabilities and Equity (ii) The foreign currency unit Consolidated Income Statement - Year 4 Other comprehensive - unrealized exchange Profit attributable to: Shareholders of P Company Non-controlling interest Comprehensive income attributable to: Shareholders of P Company Non-controlling interest Consolidated Retained Earnings Statement Year 4 Balance Jan. 1 Profit attributed to shareholder's of P Company Dividends Balance Dec. 31 Consolidated Statement of Financial Position At Dec. 31, Year 4 Assets $ Liabilities and Equity (b) Now assume that P Company is a private company. It uses ASPE and has chosen to use the equity method to report its investment in s Company. Calculate the balance in the investment account at December 31, Year 4, assuming that S Company's functional currency is the Canadian dollar. (Round your intermediate values to the nearest whole number. Omit $ sign in your response.) Balance in investment account $0 (c) Prepare the consolidated financial statements using the worksheet approach for the two scenarios for functional currency. (Values in the first two columns and last column (the "parent", "subsidiary" and "consolidated" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Entry" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Leave no cells blank - be certain to enter "O" wherever required. Round your intermediate values to the nearest whole number. Omit $ sign in your response.) CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER RAV COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, YEAR 4 Entries P Company s Company Consolidated Income Statements - Year 4 Sales Dividend income Cost of sales Other expenses Goodwill impairment loss Exchange loss Total expenses Profit Attributable to NCI Shareholders of P Company Total Retained Earnings Statements - for Year 4 Balance, January 1 Profit Dividends Balance, December 31 Consolidated Statement of Financial Position - at December 31, Year 4 Plant and equipment (net) Goodwill Investment in s Company (at cost) Inventory Monetary assets (current) Ordinary shares Retained earnings Non-controlling interest Bonds payable Current monetary liabilities Total CONSOLIDATED FINANCIAL STATEMENT WORKING PAPER RAV COMPANY CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, YEAR 4 Entries S Company Dr. Consolidated Income Statements - Year 4 P Company Sales Dividend income Gross profit Cost of sales Goodwill impairment loss expenses Other expenses Total expenses Profit Profit attributable to: NCI Shareholders of P Company Total Other comprehensive income - Unrealized exchange gain OCI attributable to: NCI Shareholders of P Company Total Comprehensive income attributable to: NCI Shareholders of P Company RETAINED EARNINGS STATEMENTS - for Year 4 Balance, January 1 Profit Dividends Balance, December 31 Accumulated Foreign Exchange Adjustment - Year 4 Balance, January 1 OCI for year A = = Il Balance, December 31 $ O $O . Total $0 $0 Consolidated Statement of Financial Position - at December 31, Year 4 Plant and equipment (net) Goodwill Investment in s Company (at cost) Inventory Monetary assets (current) Mill Hill Ordinary shares Retained earnings Accumulated foreign exchange adjustments Bonds payable Current monetary liabilities Non-controlling interest Total