waht to do with The retained earnings computed at December 31, 2013 was $80,000. The British pound is Skillet's functional currency and its (Skillet Corporation) reporting currency.

Question 1: Pan Corporation, a U.S. company, formed a British subsidiary on January 1, 2013 by investing 450,000 British pounds () in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Skillet Corporation, purchased real property on April 1, 2014 at a cost of 6:500,000, with $100,000 allocated to land and f400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The Skillet Corporation declared dividend on November 15, 2014. The retained earnings computed at December 31, 2013 was $80,000. The British pound is Skillet's functional currency and its (Skillet Corporation) reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2013 = If = $1.60 April 01, 2014 16 = $1.62 December 31, 2014 = If = $1.68 November 15, 2014= If = $1.65 2014 average rate If = $1.64 Skillet's adjusted trial balance is presented below for the year ended December 31, 2014. Debits: In Pounds Cash E 220,000 Accounts receivable 52,000 Inventory 59,000 Building 400,000 Land 100,000 Depreciation expense 7,500 Other expense 60,000 Cost of goods sold 220,000 Dividends 50,000 Total debits E 1,168,500 Credits In Pounds Accumulated depreciation $7,500 Accounts payable 61,000 Common stock 450,000 Retained earnings 1/1/2014 50,000 Sales revenue 600,000 Total credits E1,168,500 Required: Prepare Skillet's: (use translation method) 1. Complete working papers US $; 1|Page Student ID: Student Name: Assessment 3: Chapter 12 and 14" Spring 2020 ACCT 405 2- Prepare the income statement for the company above for 2014 "in US $". 3- Prepare the balance sheet for the company above as December 31, 2014 "in US $"