Student answer sheet file is the spread sheet where each of the answers will go from the other 3 files which are the 3 questions.
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 reported segments or should any additional segments also be disclosed? Explain the reason for your conclusion. Microsoft Word - Chap009 - solution Chapter 09 - Foreign Currency Transactions and Hedging Foreign Exchange Risk 9-1 Chapter 09 Foreign Currency Transactions and Hedging Foreign Exchange Risk Gaw Produce Co. purchased inventory from a Japanese company on December 18, 2009. Payment of 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 Currency Financial Statements 10-1 Chapter 10 Translation of Foreign Currency 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 borrowed §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 building 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 transferred back to Ginvold on December 31, 2008. The functional currency for the subsidiary was the stickle. Currency 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 Currency Transactions and Hedging Foreign Exchange Risk 9-1 Chapter 09 Foreign Currency Transactions and Hedging Foreign Exchange Risk Gaw Produce Co. purchased inventory from a Japanese company on December 18, 2009. Payment of 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 Currency Financial Statements 10-1 Chapter 10 Translation of Foreign Currency 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 borrowed §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 building 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 transferred back to Ginvold on December 31, 2008. The functional currency for the subsidiary was the stickle. Currency 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 reported 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. 1Sub. 2Sub. 3Sub. 4Sub. 575% Sales to outsiders100200707001,5002,5702,58597% Intersegment transfers57102550972,509 Interest revenue - outsiders1068015 Interest revenue - intersegment21517 Operating expenses - outsiders142185686201,250 Operating expenses - intersegment31051025 Interest expense8 Income taxes(5)853090 Tangible assets55175804508001,560 Intangible assets80200 Intersegment loans25 Total Revenue Sub. 11063.9% Sub. 22097.7% Sub. 3863.2% Sub. 473327.2%Reportable Sub. 51,56558.0%Reportable 2,699100.0% RevenueExpenseProfitsLosses Sub. 1106140(34)Reportable Sub. 2209211(2) Sub. 386788 Sub. 473366073Reportable Sub. 51,5651,365200Reportable 281(36) 28.1 Assets Sub. 1552.9% Sub. 220010.7%Reportable Sub. 3804.3% Sub. 453028.4%Reportable Sub. 51,00053.6%Reportable 1,865100.0% 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 8/15/10Inventory155,860.35 Accounts Payable155,860.35 8/31/10Accounts Payable749.44155,110.90 Foreign Exchange Gain749.44 9/14/10Accounts Payable837.53154,273.37 Foreign Exchange Gain837.53 Accounts Payable154,273.37 Cash154,273.37 Sale 8/15/10Accounts Receivable3,090.00 Sales3,090.00 8/31/10Accounts Receivable90.003,180.00 Foreign Exchange Gain90.00 9/14/10Accounts Receivable60.003,240.00 Foreign Exchange Gain60.00 Cash3,240.00 Accounts Receivable3,240.00 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 borrowed ¥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 transferred back to Xing on December 31, 2008. The functional currency for the subsidiary was the Yuan. Currency exchange rates were as follows: 125,000 January 1, 2008$0.1163=￥1.00280,000 October 1, 2008$0.1205=￥1.00(260,000) Average for 2008$0.1211=￥1.00160,000 December 31, 2008$0.1266=￥1.00(25,000) (60,000) 220,000 Solution Xing Co. Subsidiary Income Statement For the Year Ended December 31, 2008 YuanRateU.S. Dollars Rent revenue￥192,000$0.1211$23,251 Interest expense￥28,000$0.1211$3,391 Depreciation expense￥26,000$0.1211$3,149 Repair expense￥25,000$0.1205$3,013 Net income￥113,000$13,699 Xing Co. Subsidiary Statement of Retained Earnings For the Year Ended December 31, 2008 YuanRateU.S. Dollars Retained earnings, 01/01/2008 Net income￥113,000$13,699 Less: Dividends paid￥-60,000$0.1266($7,596) Retained earnings, 12/31/2008￥53,000$6,103 Xing Co. Subsidiary Balance Sheet December 31,2008 YuanRateU.S. Dollars Cash￥220,000$0.1266$27,852 Accounts receivable￥32,000$0.1266$4,051 Building￥260,000$0.1266$32,916 Accumulated Depreciation, Buidling￥-26,000$0.1266($3,292) Total assets￥486,000$61,528 Interest payable￥28,000$0.1266$3,545 Note payable￥280,000$0.1266$35,448 Common Stock￥125,000$0.1163$14,538 Retained earnings￥53,000$6,103 Translation adjustment$1,894 Total liabilities and equities￥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 SticklesRateU.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 SticklesRateU.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