30) Colassal Company paid $100,000 for all the common stock of Glass Company. Glass Company borrowed $20,000 from Colassal Company on a note payable. The following information is available:
|
Colassal Co.
|
Glass Co.
|
Assets:
|
|
|
Cash
|
7,000
|
40,000
|
Note Receivable
|
20,000
|
|
Investment in Glass Co.
|
100,000
|
|
Other Assets
|
108,000
|
100,000
|
Total Assets
|
235,000
|
140,000
|
Liabilities and Stockholders' Equity:
|
|
|
Accounts Payable
|
15,000
|
10,000
|
Notes Payable
|
20,000
|
30,000
|
Common Stock
|
120,000
|
60,000
|
Retained Earnings
|
80,000
|
40,000
|
Total Liabilities and Stockholders' Equity
|
235,000
|
140,000
|
Required:
Prepare the elimination entries.
31) Parent Company acquired a subsidiary in Germany in 2009. The subsidiary's balance sheet is stated in euros. When Parent Company acquired the subsidiary in 2009, a euro was worth $1.35. When the subsidiary earned its income during 2009-2014, the average exchange rate was $1.32. On December 31, 2014, a euro is worth $1.20.
At December 31, 2014, the subsidiary's assets were 1,000,000 euros; the liabilities were 500,000 euros, common stock was 400,000 euros and retained earnings was 100,000 euros.
Required:
Translate the subsidiary's balance sheet into dollars.