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The OUI Company is a French Subsidiary of an American Company, YES Below is the financial statements for 2020 These statements are in Euros but
The OUI Company is a French Subsidiary of an American Company, YES | ||||||||
Below is the financial statements for 2020 | ||||||||
These statements are in Euros but following U.S. GAAP | ||||||||
| Income Statement | |||||||
Cash | 100,000 | revenue | 200,000 | |||||
accounts rec | 100,000 | salary exp | -40000 | |||||
equipment | 100,000 | dep exp bldg | -30000 | |||||
a/d equip | -30,000 | dep exp equip | -10,000 | |||||
building | 100,000 | gain sale land | 40000 | |||||
a/d bldg | -40000 | |||||||
net income | 160,000 | |||||||
total assets | 330,000 | |||||||
Other information: | ||||||||
accounts pay | 100000 | when YES Company purchased OUI Company stock 1 euro = $1.25 | ||||||
when OUI Company purchased equipment 1 euro = $1.15 | ||||||||
c/s | 200000 | when OUI company purchased building 1 euro = $1.20 | ||||||
r/e | 30000 | when OUI Company paid a 150,000 dividend 1 euro = $1.31 | ||||||
when OUI Company sold the land 1 euro = $1.22 | ||||||||
On 12/31/2019 retained earnings in dollars $42000 | ||||||||
Average exchange rate during 2020 1 euro = $1.27 | ||||||||
spot rate 12/31/2020 1 euro = $1.24 | ||||||||
REQUIRED: WHEN THE EURO IS THE FUNCTIONAL CURRENCY OF OUI COMPANY CONVERT THE STATEMENTS INTO DOLLARS |
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