required:

a. translate the financial statement of the Japanese subsidiary using the closing method.

b. translate the financial statement of the Japanese subsidiary using the temporal method.

Jambaara Inc., an American company, established ownership in a subsidiary operating in Japan on 4 April 2008 by subscribing to shares in cash when the exchange rate was 13 to the SUS. The balance sheet and income statement of the subsidiary for the year of 2009 follow: Income Statement Sales Revenue 450,000 -Cost of Goods Sold 360,000 Gross Profit 90,000 Other Expenses Distribution Expense 2.000 Cleaning Expenses 3,000 Supplies Expense 5.000 Interest Expense 5.000 Electricity Expense 13,000 Insurance Expense 7,000 Wages & Salaries Expense 4,000 Depreciation Expense: Furniture & Fixtures 3.000 Depreciation Expense: Buildings 5.000 Depreciation Expense: Tools & Equipment 2.000 Net Profit 41.000 Balance Sheet Assets Cash 57.000 Accounts Receivables 12.000 Notes Receivable 15.000 Inventory 40,000 Buildings 180,000 Tools & Equipment 40,000 Furniture & Fixtures 130,000 Accumulated Depreciation: Building (15.000) Accumulated Depreciation: Furniture & Fixtures (8,000) Accumulated Depreciation Equipment (10,000) Total Net Assets 441,000 Liabilities & Stockholders' Equity Liabilities: Notes Payable 30,000 Accounts Payable 15.000 Bonds Payable 55.000 Total Liabilities 100,000 Stockholders'Equiry: Share Capital 300,000 Retained Earnings 41.000 Total Stockholders' Equity 341,0001 Total Liabilities & Stockholders' Equity 441,0001 Exchange Rates: V to SUS April 4 (when shares sold) 13 Average for the year 11 December 31 10 When Buildings and Furniture purchased When Land purchased 12 When Equipment Purchased 11 When Inventory Purchased 13 9