In January, 20X3, Dudwil Corporation acquired a foreign subsidiary, Holman Company, by paying cash for all of the outstanding common stock of Holman. On the purchase date, Holman Company's accounts were stated fairly in local currency units (FC). Subsequent sales of Holman's common stock have been purchased by Dudwil to maintain its 100% ownership.
Holman's trial balance, in functional currency units (same as the local currency units), on December 31, 20X7, follows:
The following additional information is available:
Required:
Prepare a schedule to translate the December 31, 20X7, trial balance of Holman Company from local currency units to dollars. The schedule should show the trial balance in FCs, the exchange rates, and the trial balance. (Do not extend the trial balance to statement columns. Supporting schedules should be in good form.)

Question

In January, 20X3, Dudwil Corporation acquired a foreign subsidiary, Holman Company, by paying cash for all of the outstanding common stock of Holman. On the purchase date, Holman Company's accounts were stated fairly in local currency units (FC). Subsequent sales of Holman's common stock have been purchased by Dudwil to maintain its 100% ownership.
Holman's trial balance, in functional currency units (same as the local currency units), on December 31, 20X7, follows:  
The following additional information is available:  
Required:
Prepare a schedule to translate the December 31, 20X7, trial balance of Holman Company from local currency units to dollars. The schedule should show the trial balance in FCs, the exchange rates, and the trial balance. (Do not extend the trial balance to statement columns. Supporting schedules should be in good form.)

Quizplus · Accepted Answer

The Answer of In January, 20X3, Dudwil Corporation acquired a foreign subsidiary, Holman Company, by paying cash for all of the outstanding common stock of Holman. On the purchase date, Holman Company's accounts were stated fairly in local currency units (FC). Subsequent sales of Holman's common stock have been purchased by Dudwil to maintain its 100% ownership.
Holman's trial balance, in functional currency units (same as the local currency units), on December 31, 20X7, follows:  
The following additional information is available:  
Required:
Prepare a schedule to translate the December 31, 20X7, trial balance of Holman Company from local currency units to dollars. The schedule should show the trial balance in FCs, the exchange rates, and the trial balance. (Do not extend the trial balance to statement columns. Supporting schedules should be in good form.)

In January, 20X3, Dudwil Corporation Acquired a Foreign Subsidiary, Holman