Subject: accounting The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amountsare denominated in kroner (Kr).Accounts payableAccounts receivableOAccumulated depreciation-buildingsAccumulated depreciation-equipmentBonds payable-due 2023BuildingsCashCommon stockDepreciation expenseDividends (10/1/20)EquipmentGain on sale of buildingRent expenseRetained earnings.Salary expenseSalesUtilities expense20132014January 1,2020April 1, 2020July 1, 2020October 1,2020December 31,2020Average for2020$2.402.202.502.602.802.90Relevant exchange rates for 1 Kr were as follows:3.002.70January 1,2020(18,000)35,000(20,000)0(50,000)118,00035,000(70,000)Additional InformationAgee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020,was sold at the start of operations in 2013.• Agee purchased buildings in 2014 and sold one building with a book value of Kr 16,000 on July 1 of the current year.Equipment was acquired on April 1, 2020.Oa. Remeasurement gainTranslationlb.adjustmentpositive000(30,000)000(For all requirements, input all answers as positive.)00December 31,2020(24,000)79,000(25,000)(5,000)(50,000)97,0008,000(80,000)15,00032,00030,000(6,000)14,000(30,000)20,000a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $52,600, which included aremeasurement loss of $12,200.(80,000)5,000b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $80,000 and a cumulative translationadjustment of $2,000 (credit balance).

Remeasurement is the process of re-establishing the value of an item to provide a more accurate…

a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $52,600, which included a remeasurement loss of $12,200. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $80,000 and a cumulative translation adjustment of $2,000 (credit balance). (For all requirements, input all answers as positive.) a. Remeasurement Translation b. adjustment gain positive

a. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $52,600, which included a remeasurement loss of $12,200. b. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $80,000 and a cumulative translation adjustment of $2,000 (credit balance). (For all requirements, input all answers as positive.) a. Remeasurement Translation b. adjustment gain positive

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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Given the following account balances of MASK RIDER Co. for the year ended December 31, 2020, prepare a Statement of Financial Position using the report form. Mask Rider, capital Beg. Balance PO Contribution 30, d00 DUE ON MAY 15, 2021 Withdrawal 15, 000 Additional cortribution 5, 000 Net Income Ending Balance 57, 450 Property, Plant and Equipment P 300, 000 Accumulated Depreciation 5, 000 Accounts payable B, 110 Uneamed income 1, 395 Cash 44, 535 Prepaid rent 5, 000 Salaries payable 1, 000 Lang-term note payable 23. 000 Accounts receivable 575 Merchandise Inventory 15,345 Utilities payable 4. 00
(For all requirements, Input all answers as positive.) a. Remeasurement b. Translation adjustment
The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2023 Buildings Cash Common stock Depreciation expense Dividends (10/1/20) Equipment O Gain on sale of building Rent expense Retained earnings Salary expense Sales Utilities expense Additional Information Relevant exchange rates for 1 Kr were as follows: 2013 2014 January 1, 2020 April 1, 2020 July 1, 2020 October 1, 2020 December 31, 2020 Average for 2020 $ 2.25 2.55 January 1, 2020 (24,000) 45,000 (36,000) 0 (55,000) 125,000 Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013. O Agee purchased buildings in 2014 and sold one building with a book value of Kr 5,100 on July 1 of the current year. o Equipment was…
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