Question
In: Accounting
International Co. started 2018 with two assets: Cash of §26,000 (Stickles) and Land that originally cost...
International Co. started 2018 with two assets: Cash of §26,000 (Stickles) and Land that originally cost §72,000 when acquired on April 4, 2015. On May 1, 2018, the company rendered services to a customer for §36,000, an amount immediately paid in cash. On October 1, 2018, the company incurred an operating expense of §22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:
| April 4, 2015 | § | 1 | = | $ | 0.28 |
| January 1, 2018 | § | 1 | = | $ | 0.29 |
| May 1, 2018 | § | 1 | = | $ | 0.30 |
| October 1, 2018 | § | 1 | = | $ | 0.31 |
| December 31, 2018 | § | 1 | = | $ | 0.35 |
Assume International was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2018 and properly label the resulting gain or loss.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Prat Corp. started the 2018 accounting period with $29,000 of assets (all cash), $11,500 of liabilities,...
Prat Corp. started the 2018 accounting period with $29,000 of
assets (all cash), $11,500 of liabilities, and $14,000 of common
stock. During the year, the Retained Earnings account increased by
$15,550. The bookkeeper reported that Prat paid cash expenses of
$30,500 and paid a $2,900 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $4,000 cash to
reduce the liability owed to the...
Prat Corp. started the 2018 accounting period with $31,000 of assets (all cash), $12,500 of liabilities,...
Prat Corp. started the 2018 accounting period with $31,000 of
assets (all cash), $12,500 of liabilities, and $16,000 of common
stock. During the year, the Retained Earnings account increased by
$16,550. The bookkeeper reported that Prat paid cash expenses of
$31,500 and paid a $3,100 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $5,500 cash to
reduce the liability owed to the...
Prat Corp. started the 2018 accounting period with $31,000 of assets (all cash), $12,500 of liabilities,...
Prat Corp. started the 2018 accounting period with $31,000 of
assets (all cash), $12,500 of liabilities, and $16,000 of common
stock. During the year, the Retained Earnings account increased by
$16,550. The bookkeeper reported that Prat paid cash expenses of
$31,500 and paid a $3,100 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $5,500 cash to
reduce the liability owed to the...
Prat Corp. started the 2018 accounting period with $34,000 of assets (all cash), $14,000 of liabilities,...
Prat Corp. started the 2018 accounting period with $34,000 of
assets (all cash), $14,000 of liabilities, and $19,000 of common
stock. During the year, the Retained Earnings account increased by
$18,050. The bookkeeper reported that Prat paid cash expenses of
$33,000 and paid a $3,400 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $8,500 cash to
reduce the liability owed to the...
Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities,...
Prat Corp. started the 2018 accounting period with $30,000 of
assets (all cash), $12,000 of liabilities, and $15,000 of common
stock. During the year, the Retained Earnings account increased by
$16,050. The bookkeeper reported that Prat paid cash expenses of
$31,000 and paid a $3,000 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $4,500 cash to
reduce the liability owed to the...
Prat Corp. started the 2018 accounting period with $35,000 of assets (all cash), $14,500 of liabilities,...
Prat Corp. started the 2018 accounting period with $35,000 of
assets (all cash), $14,500 of liabilities, and $20,000 of common
stock. During the year, the Retained Earnings account increased by
$18,550. The bookkeeper reported that Prat paid cash expenses of
$33,500 and paid a $3,500 cash dividend to the stockholders, but
she could not find a record of the amount of cash that Prat
received for performing services. Prat also paid $9,500 cash to
reduce the liability owed to the...
HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets Buildings $ 756,000 Land 268,000 Cash 66,000...
HUBBARD CORPORATION
Balance Sheet
At
December 31, 2018
Assets
Buildings
$
756,000
Land
268,000
Cash
66,000
Accounts
receivable (net)
132,000
Inventories
252,000
Machinery
286,000
Patent
(net)
106,000
Investment in
marketable equity securities
72,000
Total
assets
$
1,938,000
Liabilities and Shareholders' Equity
Accounts
payable
$
221,000
Accumulated
depreciation
261,000
Notes
payable
512,000
Appreciation of
inventories
86,000
Common stock,
authorized and issued
106,000 shares of no par stock
424,000
Retained
earnings
434,000
Total
liabilities and shareholders' equity
$
1,938,00
Additional information:
The...
Topic: Revaluation and Disposal On January 1, 2018, Loony Co. acquired two assets within the same...
Topic: Revaluation and Disposal
On January 1, 2018, Loony Co. acquired two assets within the
same class of plant and equipment. Information on these assets is
as follows:
Cost
Useful life
Machine A
$3,000,000
5 years
Machine B
1,800,000
3 years
The machines are expected to generate benefits evenly over their
useful lives. The class of plant and equipment is measure using the
revaluation model.At December 31, 2018, information about the
assets is as follows:
Fair Value
Useful Life
Machine...
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction for $1,560,000. An...
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction
for $1,560,000. An independent appraisal of the fair value of the
assets acquired is listed below:
Land $171,600
Building $514, 800
Equipment $600,000
Inventories $429,000
On 1 september 2018, ABC Co exchanged land and cash of $8000 for
a plant. The land had a book value of $55,000 and a fair value of
$60,000. The exchange has commercial susbtance.
On 31 November 2018, ABC co sold equipment...
1. Washington Co. exchanged nonmonetary assets with Stranger Co. No cash was exchanged and the exchange...
1. Washington Co. exchanged
nonmonetary assets with Stranger Co. No cash was exchanged and the
exchange had no commercial substance. The carrying amount of the
asset surrendered by Washington exceeded. Both the fair value of
the asset received and Stranger’s carrying amount of that asset.
Washington should recognize the difference between the carrying
amount of the asset it surrendered and
a. The fair value of the
asset it received as a loss.
b. The fair value of the asset it...
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