Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 90,000 pounds. The subsidiary immediately borrowed 215,000 pounds on a five-year note with 7 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 305,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,750 pounds per month. By year-end, rent payments totaling 87,500 pounds had been received, and 17,500 pounds was in accounts receivable. On October 1, 3,900 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,625 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: anuary 1, 2017 October 1, 2017 December 31, 2017 Average for 2017 $2.401 Pound 2.451 2.481 2.441 Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts into U.S. dollars. Complete this question by entering your answers in the tabs below. Retained StatementEarning:s Income Balance Sheet Prepare a Income Statement. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Income Statement For the Year Ended December 31, 2017 U.S Pounds llars Rent revenue Interest expense Depreciation expense Repair expense Net income Complete this question by entering your answers in the tabs below. Retained Statement nings Income Balance Sheet Prepare a Statement of Retained earnings. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Statement of Retained Earnings For the Year Ended December 31, 2017 U.S Dollars Pounds Retained earnings, 1/1 Net income Dividends declared 12/31 Retained earnings 12/31 K Income Statement Balance Sheet Retained Earnings Income Statement Balance Sheet Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPAN Balance Sheet December 31, 2017 U.S. Dollars Pounds Assets Cash Accounts receivable Building Accumulated depreciation Total assets Liabilities and Equities Interest payable Note payable Contributed capital Retained earnings Translation adjustment Total liabilities and uities