O $:15000 O $102500 $2050 O s200 TO
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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.