PQR Inc. owns acompany that operates in France. Account balances in francs for thesubsidiary are shown below:
2015
January 1 December31
Accounts Receivables& Cash
12000
13000
Supplies
500
250
Property, Plant, and Equipment
26250
24500
Accounts Payable
-5750
-2750
Long-term Notes Payable
-9500
-5500
Common Stock
-15000
-15000
Retained Earnings
-8500
-8500
Dividends-Declared & Paid on Dec 31
0
1500
Revenues
0
-15000
Operating Expenses
0
7500
Exchange rates for 2015 were as follows:
January1 $0.22
Average for theyear 0.19
December31 0.18
Revenues were earned and operating expenses, except fordepreciation and supplies used, were incurred evenly throughout theyear. No purchases of supplies or plant assets were made during theyear.
Prepare a schedule to compute the translation gain or loss,assuming the subsidiary's functional currency is the U.S.dollar.
PQR Inc. owns acompany that operates in France. Account balances in francs for thesubsidiary are shown below:
2015
January 1 December31
Accounts Receivables& Cash | 12000 | 13000 |
Supplies | 500 | 250 |
Property, Plant, and Equipment | 26250 | 24500 |
Accounts Payable | -5750 | -2750 |
Long-term Notes Payable | -9500 | -5500 |
Common Stock | -15000 | -15000 |
Retained Earnings | -8500 | -8500 |
Dividends-Declared & Paid on Dec 31 | 0 | 1500 |
Revenues | 0 | -15000 |
Operating Expenses | 0 | 7500 |
Exchange rates for 2015 were as follows:
January1 $0.22
Average for theyear 0.19
December31 0.18
Revenues were earned and operating expenses, except fordepreciation and supplies used, were incurred evenly throughout theyear. No purchases of supplies or plant assets were made during theyear.
Prepare a schedule to compute the translation gain or loss,assuming the subsidiary's functional currency is the U.S.dollar.
