Pan Corporation,a U.S.company,formed a British subsidiary on January 1,2014 by investing 450,000 British pounds (£)in exchange for all of the subsidiary's no-par common stock.The British subsidiary,Skillet Corporation,purchased real property on April 1,2014 at a cost of £500,000,with £100,000 allocated to land and £400,000 allocated to a building.The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value.The British pound is Skillet's functional currency and its reporting currency.The British economy does not have high rates of inflation.Exchange rates for the pound on various dates were:
Skillet's adjusted trial balance is presented below for the year ended December 31,2014.
Debits:
Credits
Required:
Prepare Skillet's:
1.Translation working papers;
2.Translated income statement; and
3.Translated balance sheet.

Question

Pan Corporation,a U.S.company,formed a British subsidiary on January 1,2014 by investing 450,000 British pounds (£)in exchange for all of the subsidiary's no-par common stock.The British subsidiary,Skillet Corporation,purchased real property on April 1,2014 at a cost of £500,000,with £100,000 allocated to land and £400,000 allocated to a building.The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value.The British pound is Skillet's functional currency and its reporting currency.The British economy does not have high rates of inflation.Exchange rates for the pound on various dates were:
  Skillet's adjusted trial balance is presented below for the year ended December 31,2014.
  Debits:
  Credits
  Required:
Prepare Skillet's:
1.Translation working papers;
2.Translated income statement; and
3.Translated balance sheet.

Quizplus · Accepted Answer

The Answer of Pan Corporation,a U.S.company,formed a British subsidiary on January 1,2014 by investing 450,000 British pounds (£)in exchange for all of the subsidiary's no-par common stock.The British subsidiary,Skillet Corporation,purchased real property on April 1,2014 at a cost of £500,000,with £100,000 allocated to land and £400,000 allocated to a building.The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value.The British pound is Skillet's functional currency and its reporting currency.The British economy does not have high rates of inflation.Exchange rates for the pound on various dates were:
  Skillet's adjusted trial balance is presented below for the year ended December 31,2014.
  Debits:
  Credits
  Required:
Prepare Skillet's:
1.Translation working papers;
2.Translated income statement; and
3.Translated balance sheet.