Question
In: Accounting
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose...
Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 180,000 pesos that is sold on January 17, 2018, for 214,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:
|
November 1, 2017 |
$ |
0.64 |
= |
1 |
peso |
|
December 31, 2017 |
0.65 |
= |
1 |
||
|
January 17, 2018 |
0.66 |
= |
1 |
||
|
January 31, 2018 |
0.67 |
= |
1 |
- What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
- $120,600.
- $115,200.
- $117,000.
- $118,800.
- What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
- $115,200.
- $118,800.
- $120,600.
- $117,000.
ANSWERS ARE IN BOLD. PLEASE EXPLAIN THE SOLUTION.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2019, the subsidiary had the following balance sheet (amounts are
in thousands [000s]):
Cash
NGN
16,780
Notes payable
NGN
20,360
Inventory
11,800
Common stock
22,200
Land
4,180
Retained earnings
11,100
Building
41,800
Accumulated depreciation
(20,900
)
NGN
53,660
NGN
53,660
The subsidiary acquired the inventory on August 1, 2019, and the
land and building in 2013. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,400
Notes payable
NGN
20,200
Inventory
11,000
Common stock
21,200
Land
4,100
Retained earnings
10,600
Building
41,000
Accumulated depreciation
(20,500
)
NGN
52,000
NGN
52,000
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
15,780
Notes payable
NGN
20,040
Inventory
10,200
Common stock
20,040
Land
4,020
Retained earnings
10,020
Building
40,200
Accumulated depreciation
(20,100
)
NGN
50,100
NGN
50,100
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,400
Notes payable
NGN
20,200
Inventory
11,000
Common stock
21,200
Land
4,100
Retained earnings
10,600
Building
41,000
Accumulated depreciation
(20,500
)
NGN
52,000
NGN
52,000
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,840
Notes payable
NGN
20,480
Inventory
12,400
Common stock
22,800
Land
4,240
Retained earnings
11,400
Building
42,400
Accumulated depreciation
(21,200
)
NGN
54,680
NGN
54,680
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,820
Notes payable
NGN
20,440
Inventory
12,200
Common stock
22,600
Land
4,220
Retained earnings
11,300
Building
42,200
Accumulated depreciation
(21,100
)
NGN
54,340
NGN
54,340
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,400
Notes payable
NGN
20,200
Inventory
11,000
Common stock
21,200
Land
4,100
Retained earnings
10,600
Building
41,000
Accumulated depreciation
(20,500
)
NGN
52,000
NGN
52,000
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,770
Notes payable
NGN
20,340
Inventory
11,700
Common stock
22,100
Land
4,170
Retained earnings
11,050
Building
41,700
Accumulated depreciation
(20,850
)
NGN
53,490
NGN
53,490
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
15,450
Notes payable
NGN
20,100
Inventory
10,500
Common stock
20,100
Land
4,050
Retained earnings
10,050
Building
40,500
Accumulated depreciation
(20,250)
NGN
50,250
NGN
50,250
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued the...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is...
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria
where the local currency unit is the naira (NGN). On December 31,
2016, the subsidiary had the following balance sheet (amounts are
in thousands (000's)):
Cash
NGN
16,740
Notes payable
NGN
20,280
Inventory
11,400
Common stock
21,800
Land
4,140
Retained earnings
10,900
Building
41,400
Accumulated depreciation
(20,700
)
NGN
52,980
NGN
52,980
The subsidiary acquired the inventory on August 1, 2016, and the
land and building in 2010. It issued...
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