Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

vingston Company is a wholly owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in goghs (GH), the company's

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
vingston Company is a wholly owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in goghs (GH), the company's functional currency Financial statements for the year of 2017 are as follows: 2: Ending December 31, 2017 Sales Cost or goods sold Gross profit Less: Operating expenses Gain on sale of equipment GH 270, 000 115, 000 0, 000 ints (54, 000) Net income GH 71, 000 eBook Print References Statement of Retained Earnings For Year Ending Decenber 31, 2017 Retained earnings, 1/1/17 Net income GH 216,000 71.000 (26,000) GH 261,000 Less: Dividends Retained earnings, 12/31/17 Balance Sheet December 31, 2017 Assets Cash Receivables InventoEy Property, plant and equipment (net) GH 44,000 126,000o 58,000 339 000 Total aasets Liab:1ities Retained earnings, 12/31/17 H 557,000 Lsabilicies and Equitien GH 176, 000 00 261, 000 120,9 Total Aab11ities and equi t1e H 557, 00O Adidlitional Information Total liabilities and equities GH 557,000 Additional Information . The common stock was issued in 2010 when the exchange rate was $208 per GH: property, plant, and equipment was acquired in 2011 when the rate was $2.00 per GH 17, the retained earnings balance was translated as $396,520. The U.S.$ per GH exchange rates for 2017 follow January 1 April 1 September 1 December 31 Weighted average $1.67 1.61 1.72 1.54 1.59 Inventory was acquired evenly throughout the year The December 31, 2016, balance sheet reported a translation adjustment with a debit balance of $85,000 Dividends were declared on April 1, 2017, and a piece of equipment was sold on September 1, 2017 Assume that the gogh is Livingston Company's functional currency. Translate the 2017 foreign currency financial statements into the parent's reporting currency, the U.S dollar Complete this question by entering your answers in the tabs below. Retained Balance Sheet Statement Earnings gative amounts should be indicated with a minus are an Income State Inventory was acquired evenly throughout the year . The December 31, 2016, balance sheet reported a translation adjustment with a debit balance of $85,000 Dividends were declared on April 1, 2017, and a piece of equipment was sold on September 1, 2017 2 Assume that the gogh is Livingston Company's functional currency. Translate the 2017 foreign currency financial statements into the parent's reporting currency, the US dollar Complete this question by entering your answers in the tabs below. Book Retained Balance Sheet Income Statement Earnings Print Prepare an Income Statement. (Amounts to be deducted and negative amounts should be indicated with a minus sign.) LIVINGSTON COMPANY Income Statement For the Year Ending December 31, 2015 Retained Earnings> T 31, 201o, Ualarite slieet tepofted a translation adjustment with a debit balance of $85,000. 2 . Dividends were declared on April 1, 2017, and a piece of equipment was sold on September 1, 2017 Assume that the gogh is Livingston Company's functional currency. Translate the 2017 foreign currency financial statement parent's reporting currency, the U.S. dollar ints Complete this question by entering your answers in the tabs belov eBook Print References Income StatementEnings ned Balance She Prepare Statement of Retained Earnings.(Amounts to be deducted and negative amounts should be indicated with a minus sign.) LIVINGSTON COMPANY Statement of Retained Earnings or the Year Ending December 31, 2015 Retained eanings, 1/1 Net income Retained eanings, 12/31 Balance Sheet > K Income Statement parent's reporting currency, the U.S. dollar 2 Complete this question by entering your answers in the tabs below Income Retained Statement Earnings points Prepare a Balance Sheet. (Amounts to be deducted and negative amounts should be indicated with a minus sign.) eBook Print References Balance Sheet ber 31, 2017 Assets Total assets Liabilities and Equities Total liabilities and equities Retained Earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing IoT Systems For Institutions And Cities Internal Audit And IT Audit

Authors: Chuck Benson

1st Edition

1138590487, 978-1138590489

More Books

Students also viewed these Accounting questions