Microsoft Word - Chap008 - solution
Name _________________________________________________________________
Chapter 08
Segment and Interim Reporting
Blanton Corporation is comprised of five operating segments. Information about each of these
segments is as follows (in thousands):
Required:
(a.) Which operating segments are reportable under the revenue test?
(b.) Which operating segments are reportable under the profit or loss test?
(c.) Which operating segments are reportable under the asset test?
(d.) Which operating segments are reportable?
(e.) According to the test results for reportable segments is there a sufficient number of
eported segments or should any additional segments also be disclosed? Explain the reason for
your conclusion.
Microsoft Word - Chap009 - solution
Chapter 09 - Foreign Cu
ency Transactions and Hedging Foreign Exchange Risk
9-1
Chapter 09
Foreign Cu
ency Transactions and Hedging Foreign Exchange Risk
Gaw Produce Co. purchased inventory from a Japanese company on December 18, 2009.
Payment of ï‚´400,000 was due on January 18, 2010. Exchange rates between the dollar and
the yen were as follows:
Required:
Prepare all journal entries for Gaw Produce Co. in connection with the purchase and
payment.
Microsoft Word - Chap010
Chapter 10 - Translation of Foreign Cu
ency Financial Statements
10-1
Chapter 10
Translation of Foreign Cu
ency Financial Statements
Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2008 by
acquiring all of the common stock for §50,000. This subsidiary immediately bo
owed
§120,000 on a five-year note with ten percent interest payable annually beginning on January
1, 2008. A building was then purchased for §170,000. This property had a ten-year anticipated
life and no salvage value and was to be depreciated using the straight-line method. The
uilding was immediately rented for three years to a group of local doctors for §6,000 per
month. By year-end, payments totaling §60,000 had been made. On October 1, §5,000 were
paid for a repair made on that date. A cash dividend of §6,000 was transfe
ed back to
Ginvold on December 31, 2008. The functional cu
ency for the subsidiary was the stickle.
Cu
ency exchange rates were as follows:
1. Prepare an income statement for this subsidiary in stickles and then translate these amounts
into U.S. dollars.
2. Prepare a statement of retained earnings for this subsidiary in stickles and then translate
these amounts into U.S. dollars.
3. Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into
U.S. dollars.
chap009-final-exam-question-advanced-financial-reporting-viztt4an.pdf
Chapter 09 - Foreign Cu
ency Transactions and Hedging Foreign Exchange Risk
9-1
Chapter 09
Foreign Cu
ency Transactions and Hedging Foreign Exchange Risk
Gaw Produce Co. purchased inventory from a Japanese company on December 18, 2009.
Payment of ï‚´400,000 was due on January 18, 2010. Exchange rates between the dollar and
the yen were as follows:
Required:
Prepare all journal entries for Gaw Produce Co. in connection with the purchase and
payment.
chap010-final-exam-question-advanced-financial-reporting-ei1dujg2.pdf
Chapter 10 - Translation of Foreign Cu
ency Financial Statements
10-1
Chapter 10
Translation of Foreign Cu
ency Financial Statements
Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2008 by
acquiring all of the common stock for §50,000. This subsidiary immediately bo
owed
§120,000 on a five-year note with ten percent interest payable annually beginning on January
1, 2008. A building was then purchased for §170,000. This property had a ten-year anticipated
life and no salvage value and was to be depreciated using the straight-line method. The
uilding was immediately rented for three years to a group of local doctors for §6,000 per
month. By year-end, payments totaling §60,000 had been made. On October 1, §5,000 were
paid for a repair made on that date. A cash dividend of §6,000 was transfe
ed back to
Ginvold on December 31, 2008. The functional cu
ency for the subsidiary was the stickle.
Cu
ency exchange rates were as follows:
1. Prepare an income statement for this subsidiary in stickles and then translate these amounts
into U.S. dollars.
2. Prepare a statement of retained earnings for this subsidiary in stickles and then translate
these amounts into U.S. dollars.
3. Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into
U.S. dollars.
chapter-8n-final-exam-question-advanced-financial-reporting-zl1txb5x.pdf
Name _________________________________________________________________
Chapter 08
Segment and Interim Reporting
Blanton Corporation is comprised of five operating segments. Information about each of these
segments is as follows (in thousands):
Required:
(a.) Which operating segments are reportable under the revenue test?
(b.) Which operating segments are reportable under the profit or loss test?
(c.) Which operating segments are reportable under the asset test?
(d.) Which operating segments are reportable?
(e.) According to the test results for reportable segments is there a sufficient number of
eported segments or should any additional segments also be disclosed? Explain the reason for
your conclusion.
chapter-8-review-advanced-financial-reporting-final-og3xhzfb.xlsx
Sheet1
Sub. 1 Sub. 2 Sub. 3 Sub. 4 Sub. 5 75%
Sales to outsiders 100 200 70 700 1,500 2,570 2,585 97%
Intersegment transfers 5 7 10 25 50 97 2,509
Interest revenue - outsiders 1 0 6 8 0 15
Interest revenue - intersegment 2 15 17
Operating expenses - outsiders 142 185 68 620 1,250
Operating expenses - intersegment 3 10 5 10 25
Interest expense 8
Income taxes (5) 8 5 30 90
Tangible assets 55 175 80 450 800 1,560
Intangible assets 80 200
Intersegment loans 25
Total Revenue
Sub. 1 106 3.9%
Sub. 2 209 7.7%
Sub. 3 86 3.2%
Sub. 4 733 27.2% Reportable
Sub. 5 1,565 58.0% Reportable
2,699 100.0%
Revenue Expense Profits Losses
Sub. 1 106 140 (34) Reportable
Sub. 2 209 211 (2)
Sub. 3 86 78 8
Sub. 4 733 660 73 Reportable
Sub. 5 1,565 1,365 200 Reportable
281 (36)
28.1
Assets
Sub. 1 55 2.9%
Sub. 2 200 10.7% Reportable
Sub. 3 80 4.3%
Sub. 4 530 28.4% Reportable
Sub. 5 1,000 53.6% Reportable
1,865 100.0%
Sheet2
Sheet3
chapter-9-review-advanced-financial-reporting-final-carhrn5p.xlsx
Given
Purchase inventory from a British Company for £100,000
Date
8/15/10 $1.00 = £0.6416
8/31/10 $1.00 = £0.6447
9/14/10 $1.00 = £0.6482
Sold Inventory to a Company located in Thailand for ฿100,000
Date
8/15/10 $0.03090 = ฿1
8/31/10 $0.03180 = ฿1
9/14/10 $0.03240 = ฿1
Purchase
8/15/10 Inventory 155,860.35
Accounts Payable 155,860.35
8/31/10 Accounts Payable 749.44 155,110.90
Foreign Exchange Gain 749.44
9/14/10 Accounts Payable 837.53 154,273.37
Foreign Exchange Gain 837.53
Accounts Payable 154,273.37
Cash 154,273.37
Sale
8/15/10 Accounts Receivable 3,090.00
Sales 3,090.00
8/31/10 Accounts Receivable 90.00 3,180.00
Foreign Exchange Gain 90.00
9/14/10 Accounts Receivable 60.00 3,240.00
Foreign Exchange Gain 60.00
Cash 3,240.00
Accounts Receivable 3,240.00
chapter-10-review-advanced-financial-reporting-final-m5fczkmf.xlsx
Given
Xing Co. began operating a subsidiary in a foreign country on January 1, 2008 by acquiring all of the common stock for ¥125,000. This subsidiary immediately bo
owed ¥280,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2008. A building was then purchased for ¥260,000. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local merchants for ¥16,000 per month. By year-end, payments totaling ¥160,000 had been made. On October 1, ¥25,000 were paid for a repair made on that date. A cash dividend of ¥60,000 was transfe
ed back to Xing on December 31, 2008. The functional cu
ency for the subsidiary was the Yuan. Cu
ency exchange rates were as follows:
125,000
January 1, 2008 $0.1163 = ï¿¥1.00 280,000
October 1, 2008 $0.1205 = ï¿¥1.00 (260,000)
Average for 2008 $0.1211 = ï¿¥1.00 160,000
December 31, 2008 $0.1266 = ï¿¥1.00 (25,000)
(60,000)
220,000
Solution
Xing Co. Subsidiary
Income Statement
For the Year Ended December 31, 2008
Yuan Rate U.S. Dollars
Rent revenue ï¿¥192,000 $0.1211 $23,251
Interest expense ï¿¥28,000 $0.1211 $3,391
Depreciation expense ï¿¥26,000 $0.1211 $3,149
Repair expense ï¿¥25,000 $0.1205 $3,013
Net income ï¿¥113,000 $13,699
Xing Co. Subsidiary
Statement of Retained Earnings
For the Year Ended December 31, 2008
Yuan Rate U.S. Dollars
Retained earnings, 01/01/2008
Net income ï¿¥113,000 $13,699
Less: Dividends paid ï¿¥-60,000 $0.1266 ($7,596)
Retained earnings, 12/31/2008 ï¿¥53,000 $6,103
Xing Co. Subsidiary
Balance Sheet
December 31,2008
Yuan Rate U.S. Dollars
Cash ï¿¥220,000 $0.1266 $27,852
Accounts receivable ï¿¥32,000 $0.1266 $4,051
Building ï¿¥260,000 $0.1266 $32,916
Accumulated Depreciation, Buidling ï¿¥-26,000 $0.1266 ($3,292)
Total assets ï¿¥486,000 $61,528
Interest payable ï¿¥28,000 $0.1266 $3,545
Note payable ï¿¥280,000 $0.1266 $35,448
Common Stock ï¿¥125,000 $0.1163 $14,538
Retained earnings ï¿¥53,000 $6,103
Translation adjustment $1,894
Total liabilities and equities ï¿¥486,000 $61,528
$0
final-exam-student-answer-sheet-advanced-financial-reporting-copy-1t0iwxzv.xlsx
Chapter 8
Chapter 9
Chapter 10
Ginvold Co. Subsidiary
Income Statement
For the Year Ended December 31, 2008
Stickles Rate U.S. Dollars
Rent revenue §72,000
Interest expense §(12,000)
Depreciation expense §(17,000)
Repair expense §(5,000)
Net income §38,000
Ginvold Co. Subsidiary
Statement of Retained Earnings
For the Year Ended December 31, 2008
Stickles Rate U.S. Dollars
Retained earnings, 01/01/2008
Net income §38,000
Less: Dividends paid §(6,000)
Retained earnings, 12/31/2008 §32,000
Ginvold Co. Subsidiary
Balance Sheet
December 31,2008
Cash §49,000
Accounts receivable §12,000
Building §170,000
Accumulated Depreciation, Buidling §(17,000)
Total assets §214,000
Interest payable §12,000
Note payable §120,000
Common Stock §50,000
Retained earnings §32,000
Translation adjustment
Total liabilities and equities §214,000