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translation (4 methods) current/ current and non current/ monetary and nonmonetary/ temporal with the accounting exposure and translation gain (loss) Galaxy Inc., an American company,
translation (4 methods) current/ current and non current/ monetary and nonmonetary/ temporal
with the accounting exposure and translation gain (loss) Galaxy Inc., an American company, established ownership in a subsidiary operating in Japan on 1 April 2008 by subscribing to shares in cash when the exchange rate was 13 * to the SUS. The balance sheet and income statement of the subsidiary for the year of 2009 follow Income Statement 700,000 300,000 400,000 Sales Revenue -Cost of Goods Sold Gross Profit Other Expenses Distribution Expense Cleaning Expenses Supplies Expense Interest Expense Electricity Expense Insurance Expense Wages & Salaries Expense Depreciation Expense Furniture & Fixtures Depreciation Expense Buildings Depreciation Expense Tools & Equipment Net Profit 12.000 10,000 5,000 5,000 13,000 17.000 38,000 8,000 10,000 12,000 270.000 Balance Sheet (000) Assets Cash Accounts Receivables Notes Receivable Inventory Buildings Tools & Equipment Furniture & Fixtures Land Accumulated Depreciation Building Accumulated Depreciation Furniture & Fixtures Accumulated Depreciation Equipment Total Net Assets Liabilities & Stockholders' Equity Libilities: 130.000 60,000 50,000 10,000 280,000 140,000 100,000 300,000 (150.000) (80,000) (70,000) 800,000 800,000 Liabilities & Stockholders' Equity Liabilities: Bank Loans Accounts Payable Bonds Payable Total Liabilities Stockholders' Equity: Share Capital 230,000 50,000 120,000 400,000 130,000 + Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders' Equity 270.000 400,000 800,000 Exchange Rates: April 4 (when shares sold) Average for the year December 31 When Buildings and Furniture purchased When Land purchased When Equipment Purchased When Inventory Purchased to SUS 13 11 10 9 12 11 13
translation (4 methods) current/ current and non current/ monetary and nonmonetary/ temporal
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