Required: Using the information provided below, translate the December 31, 2021 Ocean Resort

Trial Balance (in Fiji Dollars) to U.S. Dollars. Prepare an income statement, retained earnings

statement, and a balance sheet showing both Fiji Dollars and U.S. Dollars.

Also prepare a December 31, 2021 Computation of Translation Adjustment.

Phoenix Properties, Inc. has a subsidiary Ocean Resort, Inc. which ownes and operates

a resort in Fiji. The resort operated separately prior to Phoenix Properties buying the

property on October 1, 2016. Ocean Resort records tansactions in Fiji Dollars and

prepares financial statements in Fiji Dollars.

Ocean Resort was established on October 1, 2016 with the purchase of common stock.

Ocean Resort declared a dividend on May 1, 2021 for dividend payment on June 1, 2021.

Ocean Resort sold excess equipment on August 15, 2021.

The January 1, 2021 Retained Earnings translated to USD was $396,520.

The December 31, 2020 Cumulative Translation adjustment was $142,120 USD.

Based on analysis the functional currency for Ocean Resort is the Fiji Dollar (FJ$).

Foreign Exchange Rates:	1 FJ$ = USD
10/1/2016	2.08
1/1/2021	1.50
5/1/2021	1.61
6/1/2021	1.70
8/15/2021	1.72
12/31/2021	1.54
Weighted Ave 2021	1.59

	FC Amount	Translation		USD Amount
	Dr / (Cr)	Period	Amt	Dr / (Cr)
Cash	44,000
Receivables	116,000
Inventory	58,000
Fixed Assets, net	339,000
Liabilities	(176,000)
Common Stock	(120,000)
Retained Earnings	(216,000)
Dividends	26,000
Translation Adjustment
Sales	(270,000)
Cost of Goods Sold	155,000
Operating Expenses	54,000
Gain on Equip Sale	(10,000)
Total	0
Code: A=average, C= current, H= historical, BOY= Beginning of year