Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 82,000 pounds. The subsidiary immediately borrowed 195,000 pounds on a five-year note with 9 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 277,000 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 8,550 pounds per month. By year-end, rent payments totaling 85,500 pounds had been received, and 17,100 pounds was in accounts receivable. On October 1, 3,500 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,725 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:

January 1, 2017 $2.00= 1 Pound

October 1, 2017 2.05= 1

December 31, 2017 2.08= 1

Average for 2017 2.04=1

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.

Prepare a Income Statement.(Amounts to be deducted should be indicated by a minus sign.)

SULLIVAN'S ISLAND COMPANYIncome StatementFor the Year Ended December 31, 2017PoundsU.S. Dollars0$0

Prepare a Statement of Retained earnings.(Amounts to be deducted should be indicated by a minus sign.)

SULLIVAN'S ISLAND COMPANYStatement of Retained EarningsFor the Year Ended December 31, 2017PoundsU.S. DollarsRetained earnings, 1/1Retained earnings, 12/310$0

Prepare a Balance Sheet.(Amounts to be deducted should be indicated by a minus sign.)

SULLIVAN'S ISLAND COMPANYBalance SheetDecember 31, 2017PoundsU.S. DollarsAssets:Total assets0$0Liabilities and Equities:Total liabilities and equities0$0