Question
In: Accounting
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).
| January 1, 2017 | December 31, 2017 | |||||
| Accounts payable | (20,000 | ) | (25,500 | ) | ||
| Accounts receivable | 49,000 | 99,000 | ||||
| Accumulated depreciation—buildings | (40,000 | ) | (45,000 | ) | ||
| Accumulated depreciation—equipment | 0 | (7,000 | ) | |||
| Bonds payable—due 2020 | (59,000 | ) | (59,000 | ) | ||
| Buildings | 129,000 | 102,500 | ||||
| Cash | 55,000 | 10,000 | ||||
| Common stock | (64,000 | ) | (75,000 | ) | ||
| Depreciation expense | 0 | 35,000 | ||||
| Dividends (10/1/17) | 0 | 52,000 | ||||
| Equipment | 0 | 50,000 | ||||
| Gain on sale of building | 0 | (8,000 | ) | |||
| Rent expense | 0 | 19,500 | ||||
| Retained earnings | (50,000 | ) | (50,000 | ) | ||
| Salary expense | 0 | 40,000 | ||||
| Sales | 0 | (148,000 | ) | |||
| Utilities expense | 0 | 9,500 | ||||
Additional Information
-
Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.
-
Agee purchased buildings in 2011 and sold one building with a book value of Kr 3,500 on July 1 of the current year.
-
Equipment was acquired on April 1, 2017.
Relevant exchange rates for 1 Kr were as follows:
| 2010 | $ | 2.65 |
| 2011 | 2.45 | |
| January 1, 2017 | 2.75 | |
| April 1, 2017 | 2.85 | |
| July 1, 2017 | 3.05 | |
| October 1, 2017 | 3.15 | |
| December 31, 2017 | 3.25 | |
| Average for 2017 | 2.95 | |
-
Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $117,200, which included a remeasurement loss of $13,200.
-
Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $122,500, and a cumulative translation adjustment of $21,400 (credit balance).
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(10,000
)
(21,500
)
Accounts receivable
33,000
83,000
Accumulated depreciation—buildings
(24,000
)
(29,000
)
Accumulated depreciation—equipment
0
(5,400
)
Bonds payable—due 2020
(54,000
)
(54,000
)
Buildings
113,000
94,500
Cash
39,000
8,400
Common stock
(63,000
)
(76,000
)
Depreciation expense
0
19,000
Dividends (10/1/17)
0
36,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017 December 31, 2017
Accounts payable (18,000) (32,500)
Accounts receivable 51,000 101,000
Accumulated depreciation—buildings (42,000) (47,000)
Accumulated depreciation—equipment 0 (7,200)
Bonds payable—due 2020 (61,000) (61,000)
Buildings 131,000 103,500
Cash 57,000 10,200
Common stock (66,000) (76,000)
Depreciation expense 0 37,000
Dividends (10/1/17) 0 54,000
Equipment 0 61,000
Gain on sale of building 0 (8,200)...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(24,000
)
(31,500
)
Accounts receivable
45,000
95,000
Accumulated depreciation—buildings
(36,000
)
(41,000
)
Accumulated depreciation—equipment
0
(6,600
)
Bonds payable—due 2020
(55,000
)
(55,000
)
Buildings
125,000
100,500
Cash
51,000
9,600
Common stock
(60,000
)
(71,000
)
Depreciation expense
0
31,000
Dividends (10/1/17)
0
48,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(16,000
)
(27,500
)
Accounts receivable
53,000
103,000
Accumulated depreciation—buildings
(44,000
)
(49,000
)
Accumulated depreciation—equipment
0
(7,400
)
Bonds payable—due 2020
(63,000
)
(63,000
)
Buildings
133,000
104,500
Cash
59,000
10,400
Common stock
(68,000
)
(80,000
)
Depreciation expense
0
39,000
Dividends (10/1/17)
0
56,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(13,000
)
(19,500
)
Accounts receivable
41,000
91,000
Accumulated depreciation—buildings
(32,000
)
(37,000
)
Accumulated depreciation—equipment
0
(6,200
)
Bonds payable—due 2020
(51,000
)
(51,000
)
Buildings
121,000
98,500
Cash
47,000
9,200
Common stock
(71,000
)
(85,000
)
Depreciation expense
0
27,000
Dividends (10/1/17)
0
44,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(13,000
)
(19,500
)
Accounts receivable
41,000
91,000
Accumulated
depreciation—buildings
(32,000
)
(37,000
)
Accumulated
depreciation—equipment
0
(6,200
)
Bonds payable—due 2020
(51,000
)
(51,000
)
Buildings
121,000
98,500
Cash
47,000
9,200
Common stock
(71,000
)
(85,000
)
Depreciation expense
0
27,000
Dividends (10/1/17)
0
44,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(10,000
)
(21,500
)
Accounts receivable
33,000
83,000
Accumulated
depreciation—buildings
(24,000
)
(29,000
)
Accumulated
depreciation—equipment
0
(5,400
)
Bonds payable—due 2020
(54,000
)
(54,000
)
Buildings
113,000
94,500
Cash
39,000
8,400
Common stock
(63,000
)
(76,000
)
Depreciation expense
0
19,000
Dividends (10/1/17)
0
36,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts
payable
(18,000
)
(24,000
)
Accounts
receivable
35,000
79,000
Accumulated
depreciation—buildings
(20,000
)
(25,000
)
Accumulated
depreciation—equipment
0
(5,000
)
Bonds
payable—due 2020
(50,000
)
(50,000
)
Buildings
118,000
97,000
Cash
35,000
8,000
Common
stock
(70,000
)
(80,000
)
Depreciation
expense
0
15,000
Dividends
(10/1/17)
0
32,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(15,000
)
(25,000
)
Accounts receivable
54,000
104,000
Accumulated
depreciation—buildings
(45,000
)
(50,000
)
Accumulated
depreciation—equipment
0
(7,500
)
Bonds payable—due 2020
(64,000
)
(64,000
)
Buildings
134,000
105,000
Cash
60,000
10,500
Common stock
(69,000
)
(82,000
)
Depreciation expense
0
40,000
Dividends (10/1/17)
0
57,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts
payable
(4,000
)
(13,500
)
Accounts
receivable
39,000
89,000
Accumulated
depreciation—buildings
(30,000
)
(35,000
)
Accumulated
depreciation—equipment
0
(6,000
)
Bonds
payable—due 2020
(60,000
)
(60,000
)
Buildings
119,000
97,500
Cash
45,000
9,000
Common
stock
(69,000
)
(81,000
)
Depreciation
expense
0
25,000
Dividends
(10/1/17)
0
42,000
Equipment...
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