Professional Documents
Culture Documents
Exercise 1
a) From the viewpoint of the US enterprise the expression used is the direct quotation.
Exercise 2
11/15 Equipment 350,000
AP 350,000
11/20 AP 350,000
Forex Loss 23,333
NP (14,000/.0375) 373,333
Bank Charges 5,000
Cash 5,000
12/31 NP 62,222
Forex gain 62,222
Interest Expense 6,377
Interest Payable 6,377
(14,000 x.18 x 41/360)=287 /045=
311,111-373,333
Exercise 3
12/15 NR 150,000 x .0390 5,850
Sales 5,850
12/31 Int. Rec. 29.25
150,000 x .12 x 16/360=800 x .03925
Int. Income 29.25
NR 37.50
Forex Gain 37.50
150,000 (.0390-.03925)
1/14 NR 37.50
ForexGain 37.50
150,000 (.0395-.03925)
Int. Rec. 2.35
Forex Gain (31.60-29.25) 2.35
Cash (151,500x.0395) 5,984.25
NR 5,925.00
Int. Rec. 31.60
Int. Income 27.65
Exercise 4
1/23 Marginal Deposit 210,040
Bank Service Charge 10,502
Cash 220,542
2/23 Purchases 412,620
Acceptance Payable 412,620
Acceptance Payable 412,690
Marginal Deposit 210,040
Cash 202,650
Exercise 5
12/23 Equipment (50T x 6.1098) 305,490
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Accounts Payable 305,490
Exercise 6
12/23 Foreign Currency Due from broker 330,490
Liability for Forward Contract 330,490
Cash 317,380
FC due from Broker 317,380
Exercise 7
8/6 Merchandise (.028 x 80T) 2,240
Accounts Payable 2,240
Exercise 8
11/23 Accounts Receivable (.007943 x 1M) 7,943
Sales 7,943
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Liability for Foreign Currency Sold 176
Forex Gain or Loss (.008558-.008382) 1M 176
Cash 8,558
Due From Broker 8,558
Exercise 9
3/31 Investment in Forward Contract 25,000
Due to Broker (100T x .25) 25,000
Exercise 12
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a. Not hyper b. Hyper
Accts Recble 480,000 480,000
Notes Recble 720,000 720,000
Inventories 240,000 240,000
Building 2,400,000 (50,000 x 225-105) x 48 2,742,857
105
Acc. Dep. (48,000) (10,000 x 225-105) x 48 (548,571)
105
3,360,000 3,634,286
Exercise 13
e)
Income from Subsidiary 9,200
Investment in Stocks, Sea 9,760
Dividends, Sea Corp. 18,960
Share Capital (1,000,000x.8) 800,000
Retained Earnings 2,330,000
Goodwill 861,500
Investment 3,193,200
NCI 798,300
Table:
100% 80% 20%
3,437,500 2,750,000 687,500
(3,220,000x.8) 2,576,000 2,060,800 515,200
861,500 689,200 172,300
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Net Assets Beg. 3,130,000
Net Assets End (6,744,000-2,400,000) 4,344,000
Increase in Net Assets 1,214,000
Decrease in RE (23,700-11,500) (12,200)
Translation Adjustment P1,226,200
Retained Earnings
Beginning Balance 400,000 274,000 c) 266,400 66,600 400,000
Net Income 688,200 69,000 a)(59000)47200 13,800 688,200
(11,800) ________
Ending Balance 1,088,200 343,000 68,600 1,088,200
Financial Position:
Cash 133,200 72,000 205,000
Accounts Receivable 250,000 120,000 370,000
Allowance ( 25,000) ( 12,000) ( 37,000)
Investment In Sea c)268,000
Airplanes 750,000 600,000 1,350,000
Notes Receivable 224,000 _______ b)224,000 ________
Total 1,608,200 780,000 1,888,200
VENEZUELA INVESTE
Transaction of Financial Statement
May 31, Year 7
Income Statement
Net Sales @ .26 1,560,000
Cost of Expenses @ .26 1,040,000
Net Income 520,000
Statement of Retained Earnings
Balance, Jan. 1 @ .25 225,000
Add Net Income 520,000
745,000
Less Dividends @ .27 162,000
Balance Dec. 31 583,000
Balance Sheet
Current Assets @ .27 54,000
Plant Assets (net) @ .27 1,215,000
Other Assets @ .27 81,000
Total Assets 1,350,00
Current Liabilities
Long Term Debt @ .27 27,000
Common Stock @ .25 405,000
Paid In Excess of Par @ .25 125,000
Retained Earnings 150,000
Accumulated Translation Adjustment 583,000
Liabilities and Stockholders Equity 60,000
1,350.000
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MULTIPLE CHOICE
2. 36,000 x 43 = P828,000
36,000 x 44.5 = P1,602,000 Answer: C
6. Ranchero Problem
1) Answer: B 2) Answer: E 635,040 3) Answer: E 361,200
10. Answer A
11. Answer A
12. Answer C
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