Ginvold co began operating a subsidiary in a foreign

Reference no: EM13574769

Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2013 by acquiring all of the common stock for §50,000. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2014. A building was then purchased for §170,000 on January 1, 2013. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for §6,000 per month. By year-end, payments totaling §60,000 had been received. On October 1, §5,000 were paid for a repair made on that date and it was the only transaction of this kind for the year. A cash dividend of §6,000 was transferred back to Ginvold on December 31, 2013. The functional currency for the subsidiary was the stickle. Currency exchange rates were as follows:

January 1st, 2013 at §1 = $2.40

October 1st, 2013 at §1 = $2.22

Average for 2013 at §1 = $2.28

December 31, 2013 at §1 = $2.16

Prepare an income statement for this subsidiary in stickles and then translate these amounts into U.S. dollars.

Reference no: EM13574769

Questions Cloud

Provide a draft sexual harassment policy that is in : you are a captain in charge of operations within your police department. as part of your responsibilities you supervise

Revenue and expense data for martinez company are as : revenue and expense data for martinez company are as follows 2012 2011 administrative expenses 37000 20000 cost of

On september 1 2011 donna equipment signed a one-year 8 : on september 1 2011 donna equipment signed a one-year 8 interest bearing note payable for 50000. assuming donna

Hammond corporation reported the following operating : hammond corporation reported the following operating results for two consecutive years.20082007percentage

Ginvold co began operating a subsidiary in a foreign : ginvold co. began operating a subsidiary in a foreign country on january 1 2013 by acquiring all of the common stock

The bookkeeper for andys country music bar went insane and : the bookkeeper for andys country music bar went insane and left this incomplete balance sheet. andys working capital is

A company had a 56000 unfavorable direct material : a company had a 56000 unfavorable direct material efficiency variance during a time period when the standard rate per

In proper format prepare the income statement statement of : tarech company engaged in activities during the first year of its operations that resulted in the following service

Net assets of the acquired company are maintained at book : in a transaction accounted for using the acquisition method where consideration transferred exceeds book value of the

User Account

All Pages