Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 92.000 pounds. The subsidiary immediately borrowed 220,000 pounds on a five-year note with 8 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 312,000 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, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,800 pounds per month. By year-end, rent payments totaling 88,000 pounds had been received, and 17,600 pounds was in accounts receivable. On October 1, 2020, 4,000 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,600 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: = January 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $ 2.50 2.55 2.58 2.54 1 Pound 1 1 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. Income Statement Retained Earnings 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, 2020 Pounds U.S. Dollars Rent revenue Repair expense Depreciation expense Interest expense Net income 0 $ 0 Complete this question by entering your answers in the tabs below. Income Statement Retained Earnings 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, 2020 Pounds U.S. Dollars Retained earnings, 1/1 Net income I Dividends declared, 12/31 Retained earnings, 12/31 0 $ 0 Income Statement Retained Earnings Balance Sheet Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Balance Sheet December 31, 2020 Pounds U.S. Dollars Assets Cash Accounts receivable I 0 $ 0 Building Accumulated depreciation Total assets Liabilities and Equities: interest payable Note payable Contributed capital Retained earnings Translation adjustment Total liabilities and equities 0 $ 0 Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 92.000 pounds. The subsidiary immediately borrowed 220,000 pounds on a five-year note with 8 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 312,000 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, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,800 pounds per month. By year-end, rent payments totaling 88,000 pounds had been received, and 17,600 pounds was in accounts receivable. On October 1, 2020, 4,000 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,600 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: = January 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $ 2.50 2.55 2.58 2.54 1 Pound 1 1 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. Income Statement Retained Earnings 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, 2020 Pounds U.S. Dollars Rent revenue Repair expense Depreciation expense Interest expense Net income 0 $ 0 Complete this question by entering your answers in the tabs below. Income Statement Retained Earnings 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, 2020 Pounds U.S. Dollars Retained earnings, 1/1 Net income I Dividends declared, 12/31 Retained earnings, 12/31 0 $ 0 Income Statement Retained Earnings Balance Sheet Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Balance Sheet December 31, 2020 Pounds U.S. Dollars Assets Cash Accounts receivable I 0 $ 0 Building Accumulated depreciation Total assets Liabilities and Equities: interest payable Note payable Contributed capital Retained earnings Translation adjustment Total liabilities and equities 0 $ 0