Student ID Student Name Assessment 3 Chapter 12 and 14" Spring 2020 ACCT 405 Question 1: Pan Corporation, a US company, fomed a British subsidiary on January 1, 2013 by investing 450000 British pounds (E) in exchange for all of the subsidiary's no par common stock. The British subsidiary, Skillet Corporation, purchased real property on April 1, 2014 at a cost of 500.000, with C100,000 allocated to land and F 40X80Callocated to a building The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The Skillet Corporative declared dividend on November 15, 2014. The retained earnings computed at December 31, 2013 was 580,000. The British pound is Skillet's functional currency and its (Skillet Corporation) reporting currency. The British comomy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2013 = 1 $1.60 April 01, 2014 = 16 = $1.62 December 31, 2014 - 16 - $1.65 November 15, 2014 $1.65 2014 average ratu - 14 - $1.64 Skillet's adjusted trial balance is pleblow for the year ended December 31, 2014, Dehits: Cash Accounts receivable Laveriton Building Land Depresiatical experise Other expenses Cost of goods solu Dividends In Pounds E 220.000 52,000 59,000 40N.MK 100,000 7.500 60,000 220,000 50,000 Total debits 1,168,500 Credits Accumulated depreciation Accounts payable Common stock Retained eamings 1/1/2014 In l'ounds 17.500 61,000 150.000 50,000 Sales revenue NIINKI Total credits 21,168,500 Required: Prepare Skillet' (use translation method 1. Complete working paper US$ 1 Page Student ID Student Name Assessment 3 Chapter 12 and 14" Spring 2020 ACCT 405 Question 1: Pan Corporation, a US company, fomed a British subsidiary on January 1, 2013 by investing 450000 British pounds (E) in exchange for all of the subsidiary's no par common stock. The British subsidiary, Skillet Corporation, purchased real property on April 1, 2014 at a cost of 500.000, with C100,000 allocated to land and F 40X80Callocated to a building The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The Skillet Corporative declared dividend on November 15, 2014. The retained earnings computed at December 31, 2013 was 580,000. The British pound is Skillet's functional currency and its (Skillet Corporation) reporting currency. The British comomy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2013 = 1 $1.60 April 01, 2014 = 16 = $1.62 December 31, 2014 - 16 - $1.65 November 15, 2014 $1.65 2014 average ratu - 14 - $1.64 Skillet's adjusted trial balance is pleblow for the year ended December 31, 2014, Dehits: Cash Accounts receivable Laveriton Building Land Depresiatical experise Other expenses Cost of goods solu Dividends In Pounds E 220.000 52,000 59,000 40N.MK 100,000 7.500 60,000 220,000 50,000 Total debits 1,168,500 Credits Accumulated depreciation Accounts payable Common stock Retained eamings 1/1/2014 In l'ounds 17.500 61,000 150.000 50,000 Sales revenue NIINKI Total credits 21,168,500 Required: Prepare Skillet' (use translation method 1. Complete working paper US$ 1 Page