Prepare an income statement a statement of retained

Assignment Help Accounting Basics

Reference no: EM13391549

Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2011 by acquiring all of the common stock for §50,000 Stickles, the local currency. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2012. A building was then purchased for §170,000 on January 1, 2011. 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, 2011. The functional currency for the subsidiary was the Stickle (§). Currency exchange rates were as follows:

REQUIRED: Prepare an income statement, a statement of retained earnings and a balance sheet for this subsidiary in stickles and then translate the amounts into U.S. dollars.

Reference no: EM13391549

Questions Cloud

Assume there is no need for additional investment in : a manufacturing company is thinking of launching a new product. the company expects to sell 950000 of the new product

Find a scholarlypeer-reviewed journal article on article : select a marketing topic of your choice examples include global marketing services pricing. begin your research by

The problem requires to be resolved quickly or the company : imagine that you are the team leader for a project at work. your team has been assigned with opening a new market in

Your firmrsquos strategic plan calls for a net increase in : your firmrsquos strategic plan calls for a net increase in total assets of 100 million during the next five years which

Prepare an income statement a statement of retained : ginvold co. began operating a subsidiary in a foreign country on january 1 2011 by acquiring all of the common stock

Review your peersrsquo posts and respond to at least two of : review the standard costs wake up and smell the coffee.article. when evaluating performance many organizations compare

One of the essential tasks of an organizationrsquos : we are living in times of immense change. one of the essential tasks of an organizationrsquos leadership is to lead

Jessica and david are student interns at balanced books : jessica and david are student interns at balanced books bookkeeping. they have taken several business math and

American currently sells brand name tires at wholesale : discount stores for private labeling. marginal cost is a constant 10 per tire regardless of the sub-market in which

User Account

All Pages