Translate the consolidated income statement and balance sheet from English pound
ID: 2418903 • Letter: T
Question
Translate the consolidated income statement and balance sheet from English pounds to U.S. dollars.
Exchange rates are:
March 31, 2012, Exchange Rate: 1 £ = $1.24
Average Rate for 2012: 1 £ = $1.22
December 31, 2012, Exchange Rate: 1 £ = $1.20
Which rates should i use when converting the below lines?
SALES REVENUE COST OF GOODS SOLD SELLING EXPENSES ADMINISTRATIVE EXPENSES INTEREST EXPENSES Income/Loss from Investment in Subsidiary BEGIN BALANCE NET INCOME Cash Accounts Receivable Inventory Short-Term Investments Prepaid Assets Investment in Subsidiary Long-Term Notes Receivable Debt Service Fund Depreciable Assets Accumulated Depreciation Intangible Assets Current Liabilities Long-Term Notes Payable Common Stock Retained EarningsExplanation / Answer
Balance Sheet
Company
Parent
Subsidiary
Adjustment/ Elemination
Consolidation
Accounts
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Common Stock
4,00,000
2,00,000
-200000
0
400000
Capital reserve
50000
50000
0
Retained Earnings
4,82,000
50,000
141000
0
673000
Long-Term Notes Payable
2,25,000
1,19,000
-100000
0
244000
Current Liabilities
92,000
44,000
0
136000
Depreciable Assets Less Acc Dep
7,00,000
3,00,000
20000
1020000
0
Intangible Assets
45,000
20,000
65000
0
Investment in Subsidiary
2,90,000
-290000
0
0
Long-Term Notes Receivable
1,50,000
14,000
-100000
64000
0
Debt Service Fund
50,000
50000
0
Cash
10,000
4,000
14000
0
Accounts Receivable
25,000
10,000
35000
0
Inventory
30,000
12,000
20000
62000
0
Short-Term Investments
40,000
6,000
46000
0
Prepaid Assets
35,000
12,000
47000
0
-300000
-159000
1453000
1453000
Particulars
Expenses
Incomes
Expenses
Incomes
Sales Revenue
7,50,000
2,45,000
-17000
0
978000
Cost of Goods Sold
3,30,000
1,60,000
-5000
485000
0
Selling Expenses
1,00,000
45,000
145000
0
Administrative Expenses
1,20,000
70,000
-7000
183000
0
Interest Expenses
24,000
5,000
29000
0
Net P&L
1,76,000
-35,000
-5000
-5000
141000
-17000
-17000
146000
Balance Sheet
Company
Parent
Subsidiary
Adjustment/ Elemination
Consolidation
Accounts
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Debit( assets)
Liabilities(Credit)
Common Stock
4,00,000
2,00,000
-200000
0
400000
Capital reserve
50000
50000
0
Retained Earnings
4,82,000
50,000
141000
0
673000
Long-Term Notes Payable
2,25,000
1,19,000
-100000
0
244000
Current Liabilities
92,000
44,000
0
136000
Depreciable Assets Less Acc Dep
7,00,000
3,00,000
20000
1020000
0
Intangible Assets
45,000
20,000
65000
0
Investment in Subsidiary
2,90,000
-290000
0
0
Long-Term Notes Receivable
1,50,000
14,000
-100000
64000
0
Debt Service Fund
50,000
50000
0
Cash
10,000
4,000
14000
0
Accounts Receivable
25,000
10,000
35000
0
Inventory
30,000
12,000
20000
62000
0
Short-Term Investments
40,000
6,000
46000
0
Prepaid Assets
35,000
12,000
47000
0
-300000
-159000
1453000
1453000
Particulars
Expenses
Incomes
Expenses
Incomes
Sales Revenue
7,50,000
2,45,000
-17000
0
978000
Cost of Goods Sold
3,30,000
1,60,000
-5000
485000
0
Selling Expenses
1,00,000
45,000
145000
0
Administrative Expenses
1,20,000
70,000
-7000
183000
0
Interest Expenses
24,000
5,000
29000
0
Net P&L
1,76,000
-35,000
-5000
-5000
141000
-17000
-17000
146000
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