P9-28

NO TEMPLATE FOR THIS ONE - PLEASE CREATE YOUR OWN WORKSHEET

Page 1

P10-34
Student Name:
Class:
Problem 10-34
a. Remeasurement of Mexican Operations

Accounts payable
Accumulated depreciation
Buildings and equipment
Cash
Depreciation expense
Inventory (beginning-income statement)
Inventory (ending-income statement)
Inventory (ending-balance sheet)
Purchases
Receivables
Salary expense
Sales
Main office
Remeasurement loss
Total

Debit
(Ps.)
49,000
19,000
40,000
59,000
2,000
23,000
28,000
28,000
68,000
21,000
9,000
124,000
30,000

Exchange
Rate

Debit
(C$)

Credit
(C$)

Given
Fm. Sch. One

Schedule One-Remeasurement Loss

(Ps.)

Exchange
Rate

$C

Net monetary liabilities, 1/1/13

Increases in net monetary assets-Sales
Decreases in net monetary assets:
Purchases
Salary expense
Net monetary assets, 12/31/13
Net monetary assets, 12/31/13 at
current exchange rate
Remeasurement loss

b. and c. Financial Statements for Subsidiary

Income Statement
For the Year Ended December 31, 2013
Part b.
$C
Sales
Cost of goods sold
Gross profit

Page 2

Exchange
Rate

Part c.
$U.S.

P10-34
Depreciation expense
Salary expense
Utility expense
Gain on sale of equipment
Remeasurement loss
Net income

Page 3

P10-34
Statement of Retained Earnings
For the Year Ended December 31, 2013
Part b.
$C
135,530

Retained earnings, 1/1/13

Net income
Dividends paid
Retained earnings, 12/31/13

Exchange
Rate
given
above

Part c.
$U.S.
70,421.00

Exchange
Rate

Part c.
$U.S.

Balance Sheet
December 31, 2013
Part b.
$C
Cash
Receivables
Inventory
Buildings and equipment
Accumulated depreciation
Total
Accounts payable
Notes payable
Common stock
Retained earnings
Cumulative translation adjustment
Total

above
Fm. Sch. Two

Schedule Two-Translation Adjustment

Part b.
$C
Net assets, 1/1/13
Changes in net assets
Net income
Dividends
Net assets, 12/31/13

Exchange
Rate

Part c.
$U.S.

Above

Net assets, 12/31/13 at current rate

Translation adjustment, 2013 (negative)
Cumulative translation adjustment, 1/1/13
(positive)
Cumulative translation adjustment, 12/31/13
(positive)

(36,950.00)

Page 4

P10-34

Page 5

P10-34

Page 6

P10-34

Page 7

Given P10-34
Given P10-34:
SENDELBACH CORPORATION
Ledgers for subsidiary as of December 31, 2013
Main Operation - Canada
Debit
(C$)
Accounts payable
Accumulated depreciation
Buildings and equipment
Cash
Common stock
Cost of goods sold
Depreciation expense
Dividends paid, 4/1/13
Gain on sale of equipment, 6/1/13
Inventory
Notes payable - due in 2016
Receivables
Retained earnings, 1/1/13
Salary expense
Sales
Utility expense
Branch operation
Totals

Credit
(C$)
35,000
27,000

167,000
26,000
50,000
203,000
8,000
28,000
5,000
98,000
76,000
68,000
135,530
26,000
312,000
9,000
7,530
640,530

640,530

Branch Operation - Mexico

Debit
(Ps.)
Accounts payable
Accumulated depreciation
Buildings and equipment
Cash
Depreciation expense
Inventory (beginning-income statement)
Inventory (ending-income statement)
Inventory (ending-balance sheet)
Purchases
Receivables
Salary expense
Sales
Main office
Totals

Credit
(Ps.)
49,000
19,000

40,000
59,000
2,000
23,000
28,000
28,000
68,000
21,000
9,000

250,000

Page 8

124,000
30,000
250,000

Given P10-34
Additional information:
Mexican building and equipment acquired
when one peso was worth C$.25
Mexican main office account (equity account)
balance on 12/31/13
Currency exchange rates for Mexican operation:

7,530
C$
0.30
0.32
0.34
0.35

Weighted average, 2012

January 1, 2013
Weighted-average rate for 2013
December 31, 2013
Cumulative translation adjustment (credit) on
December 31, 2012 consolidated balance sheet
Subsidiary's common stock issued when
exchange was $.45=C$1
Subsidiary retained earnings at Dec. 31, 2012
Canadian dollar
Translated figure
Exchange rates for translation purposes:

Ps.
1
1
1
1
36,950

$
US$
0.70
0.69
0.68
0.67
0.65

January 1, 2013
April 1, 2013
June 1, 2013
Weighted-average for 2013
December 31, 2013

Page 9

135,530
70,421
C$
1
1
1
1
1