Columbia Corporation, a U.S.-based company, acquired a 100% interest in Swoboda Company in Lodz, Poland on January 1, Year 1 when the exchange rate for the Polish zloty was $0.25. Translate Swoboda’s financial statements into U.S dollars in accordance with U.S. GAAP at December 31, Year 2, using the three scenarios presented in the case and explain why the translation adjustments end up as positive or negative numbers. Read the case on page 325 of the textbook and submit an Excel file with your response to questions 1 and 2. For question 1, prepare the financial statements under each of the three scenarios as instructed.

Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 100,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply:Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements.

Stuff Inc., a U.S. company, imported goods for 50,000 euro on Dec. 10, Year 1 and paid for them on Jan. 10. Year 2. The following exchange rates were applicable in Years 1 and 2: Exchange Rate Date Dec. 10, Yr. 1 Dec 31, Yr 1 Jan 10, Yr. 2 What approximate gain or loss will Stuff book on Jan. 10, Year 2? OA gain of $3,000. OA loss of $3,000 O Again of $5,500 OA loss of $5,500. 0.79 € 0.82 € 0.75 €

Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 118,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply: September 15 $ .60 September 30   .66 October 15 .61 Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select " No journal entry required" in the first account field.) 1 Record the entry for sales on credit.  2 Record the entry for changes in the exchange rate.  3 Record the entry for changes in the exchange rate.  4 Record the entry for receipt of payment.

On January 1, 2024, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a purchase transaction. The 2024 financial statements stated in Swiss francs are given below. GRANT MANAGEMENT CONSULTANTS Comparative Balance Sheets January 1 and December 31, 2024 Direct exchange rates for Swiss franc are: Required: A. Translate the year-end balance sheet and income statement of foreign subsidiary using the current rate method of translation. B. Prepare a schedule to verify the translation adjustment. Cash and Receivables Net Property, Plant, and Equipment 40,000 37,000 60,000 92,000 30,000 32,000 20,000 20,000 10,000 40,000 60,000 92,000 Totals Accounts and Notes Payable Common Stock Retained Earnings Totals GRANT MANAGEMENT CONSULTANTS Consolidated Income and Retained Earnings Statement for the Year Ended December 31, 2024 Jan. 1 Dec. 31 20,000 55,000 Revenues 75,000 Operating…

Amazing Corporation, a U.S. enterprise, sold product to a customer in Wales on October 1, 20x1 for £200,000 with payment required on April 1, 20x2. Relevant exchange rates are: October 1, 20x1 April 1, 20x2 Spot rate December 31, 20x1 1.86 $1.87 O Liability $1,880 O Asset $1,880 O Asset $3,880 O Liability $3,880 1.90 Forward rate (to 4/1/x2) $1.85 $1.84 The discount factor corresponding to the company's incremental borrowing rate for 3 months is 0.94. Assume that Amazing Corporation enters a forward contract on October 1, 20x1 to sell £200,000 six months hence, on April 1, 20x2. How should Amazing Corporation report the forward contract on its December 31, 20x1 financial statements?

On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal year-end is December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely that: O A. Troll entered into a forward contract to purchase Mexican peso on March 4, 2021. O B. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$). O C. this sale was denominated in U.S. dollars. O D. this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income.

Tristan Narvaja, S.A. (C). Tristan Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company. Its balance sheet for January 1 is shown in the popup window, The January 1 exchange rate between the U.S. dollar and the peso Uruguayo ($U) is $U20/$. Determine Tristan Narvaja's contribution to the translation exposure of its parent on January 1, using the current rate method. a. Determine Tristan Narvaja's contribution to the translation exposure of its parent on January 1st, using the current rate method. b. Calculate Tristan Narvaja's contribution to its parent's translation gain or loss if the exchange rate on December 31st is $U13/$. Assume all peso Uruguayo accounts remain as they were at the beginning of the year. a. Using the current rate method, what is Tristan Narvaja's contribution to the translation exposure of its parent on January 1st? $U (Round to the nearest peso Uruguayo.) Data table (Click on the following icon in order to copy its contents into a…

During December of the current year, Exide company based in America, entered into the following transactions; Dec 10 Sold machinery to company located in Colombia for 6,500,000 pesos. On this date, the spot rate was 365 pesos per U.S. Dollar. Dec 12 Purchased Machine parts from a company domiciled in Japan. The contract was denominated in 600,000 Japan yen. The direct exchange spot rate on this date was $.0392. Dec 15 Purchase other machine from same company. The contract was denominated in 550,000 yen. The direct exchange spot rate on this date was 0.411 Required: A) Prepare journal entries to record the transactions above on the books of Exide company. The company uses a periodic inventory system. B) Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows: Colombia pesO $.00265 Japan yen .0353 C) Prepare journal entries to record settlement of both open accounts on January 10. Assume that the…

During December of the current year, Exide company based in America, entered  into the following transactions;  Dec 10 Sold machinery to company located in Colombia for 6,500,000 pesos. On this date, the spot      rate was 365 pesos per U.S. Dollar. Dec 12 Purchased Machine parts from a company domiciled in Japan. The contract was denominated in 600,000 Japan yen. The direct exchange spot rate on this date was $.0392. Required: Prepare journal entries to record the transactions above on the books of Exide company. The company uses a periodic inventory system. Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows:                               Colombia peso     $.00265                                Japan yen              .0353 Prepare journal entries to record settlement of both open accounts on January 10. Assume that the direct exchange rates on the settlement dates were as follows:…