A French subsidiary of a U.S. firm keeps accounting records in euros. The U.S. dollar is considered the subsidiary's functional currency. Assume the following exchange rates:
Required:
Remeasure the following items from the December 31, 20X6 trial balance of the subsidiary:
a.Sales made evenly throughout 20X6 = 100,000 euros
b.Cost of goods sold = 30,000 euros5,000 euros purchased July 1, 20X525,000 euros purchased July 1, 20X6
c.Salary expense for 20X6 = 40,000 euros
d.Land = 1,000,000 euros200,000 euros purchased January 1, 20X5800,000 euros purchased July 1, 20X6

Question

A French subsidiary of a U.S. firm keeps accounting records in euros. The U.S. dollar is considered the subsidiary's functional currency. Assume the following exchange rates:  
Required:
Remeasure the following items from the December 31, 20X6 trial balance of the subsidiary: 
a.Sales made evenly throughout 20X6 = 100,000 euros
b.Cost of goods sold = 30,000 euros5,000 euros purchased July 1, 20X525,000 euros purchased July 1, 20X6
c.Salary expense for 20X6 = 40,000 euros
d.Land = 1,000,000 euros200,000 euros purchased January 1, 20X5800,000 euros purchased July 1, 20X6

Quizplus · Accepted Answer

The Answer of A French subsidiary of a U.S. firm keeps accounting records in euros. The U.S. dollar is considered the subsidiary's functional currency. Assume the following exchange rates:  
Required:
Remeasure the following items from the December 31, 20X6 trial balance of the subsidiary: 
a.Sales made evenly throughout 20X6 = 100,000 euros
b.Cost of goods sold = 30,000 euros5,000 euros purchased July 1, 20X525,000 euros purchased July 1, 20X6
c.Salary expense for 20X6 = 40,000 euros
d.Land = 1,000,000 euros200,000 euros purchased January 1, 20X5800,000 euros purchased July 1, 20X6

A French Subsidiary of a U