Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 74,000 pounds. The subsidiary immediately borrowed 175,000 pounds on a five-year note with 5 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 249,000 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 8,350 pounds per month. By year-end, rent payments totaling 83,500 pounds had been received, and 16,700 pounds was in accounts receivable. On October 1, 3,100 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,825 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: 1 Pound $2.70 January 1, 2017 October 1, 2017 December 31, 2017 = 2.75 = 2.88 1 2.78 1 Average for 2017 = 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. Income Statement Retained Earnings Balance Sheet Prepare a Income Statement. (Amounts to be deducted should be indicated by a minus sign.) HH H Complete this question by entering your answers in the tabs below. Income Statement Retained Earnings Balance Sheet Prepare a Income Statement. (Amounts to be deducted should be indicated by a minus sigi SULLIVAN'S ISLAND COMPANY Income Statement For the Year Ended December 31, 2017 U.S. Pounds Dollars $278,556 Rent revenue 100,200 Interest expense 43,750X 8,750 Depreciation expense 24,900 24,900 Repair expense 13,100 36,025 $348,231 181,950 Net income Income Statement Retained Earnings Balance Sheet Prepare a Statement of Retained earnings. (Amounts to be deducted should be indic SULLIVAN'S ISLAND COMPANY Statement of Retained Earnings For the Year Ended December 31, 2017 U.S. Pounds Dollars Retained earnings, 1/1 53,450( Net income 11,825 Dividends declared, 12/31 Retained earnings, $ 65,275 0 12/31 Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a SULLIVAN'S ISLAND COMPANY Balance Sheet December 31, 2017 U.S. Pounds Dollars Assets Contributed capital Retained earnings Interest payable $ Total assets Liabilities and Equities: Building Accounts receivable Cash Total liabilities and $ 0 0 equities O