Transiation of financial statements and consolidation of a foreign subsidiary (no amortization of AAP) Assume that your company owns a subsid ary operating in Great Britain. The subsidiary ma ntains its books in the British pound (E) as its functianal currency. HINT: for all parts of this problem, use a negative sign with wour answer- to indicate areduction a. Translate the subsidiary sincome satement, statement of retained earnings, balance sheet, and statement of cash flows from Brituch pounds (elinto sus (assume that the soy Retained Earnings for the subsidiary is $1,950,690 ). The relevant exchange rates is.e1) are as follows b. Compute the ending Cumulathe Translation Adjustinent directly, assuming a BOY balance of 5207,060 . Whiat journal entry did the parent company make as a result of this computation? Round all answers to the nearest doliar. c. Selected financial statement accoumts for the parent follow in d, below, Assume the following information. The purchase price for the subsidiafy included an AMP asset reiating to Land that the parent estimated was worth \pm 200000 more than its book value on the subsidiary's balance sheet. The eachange rate in effect when the subsidiary was acquired was 51,70:f1. Compute the balance of the Equity imvestment account of 53,764,200 on the parent's balance sheet. d. Peepare the consolidation spreadsheet for the year. Transiation of financial statements and consolidation of a foreign subsidiary (no amortization of AAP) Assume that your company owns a subsid ary operating in Great Britain. The subsidiary ma ntains its books in the British pound (E) as its functianal currency. HINT: for all parts of this problem, use a negative sign with wour answer- to indicate areduction a. Translate the subsidiary sincome satement, statement of retained earnings, balance sheet, and statement of cash flows from Brituch pounds (elinto sus (assume that the soy Retained Earnings for the subsidiary is $1,950,690 ). The relevant exchange rates is.e1) are as follows b. Compute the ending Cumulathe Translation Adjustinent directly, assuming a BOY balance of 5207,060 . Whiat journal entry did the parent company make as a result of this computation? Round all answers to the nearest doliar. c. Selected financial statement accoumts for the parent follow in d, below, Assume the following information. The purchase price for the subsidiafy included an AMP asset reiating to Land that the parent estimated was worth \pm 200000 more than its book value on the subsidiary's balance sheet. The eachange rate in effect when the subsidiary was acquired was 51,70:f1. Compute the balance of the Equity imvestment account of 53,764,200 on the parent's balance sheet. d. Peepare the consolidation spreadsheet for the year
