国际会计学习题

1、RadCoInternationalisaU.S.firmwithawhollyownedsubsidiaryinFrance.thebasicassumptionsinvolvedintheFrenchsubsidiaryanditsinteractionwiththeparentcompanyareasfollows:RelevantExchangeRates(U.S.$/euro)December31,2008$1.2557December31,2009$1.3644Averageduring2009$1.3101BalanceSheet(ineuro)YearendDecember31,2009Cash2,000Accountsreceivable4,725Inventories4,700Fixedassets27,500Accumulateddepreciation(5,500)Total33,425Accountspayable6,000Long-termdebt10,800Capitalstock6,200Retainedearnings10,425Total33,425IncomeStatement(ineuro)FortheYearEndingDecember31,2009SalesExpensesCostofgoodssold31,500(18,000)Depreciation(2,750)Other(4,500)Taxes(1,500)Netincome4,750Dividends2,375Thefunctionalcurrencyofthesubsidiaryistheeuro,andthefinancialstatementshavebeenrecastinU.S.GAAPtoassistinthetranslationprocess.Capitalstockwasissuedandfixedassetswereacquiredwhentheexchangewas1euro=1.05$,dividendsarepaidatarateof$1.3644pereuro.Purchases,sales,andotherexpensesoccurredevenlythroughouttheyear.Thereisazerobeginningbalanceinthecumulativetranslationadjustmentaccount.InflationinFrancehasbeeninthesingledigitsinrecentyears.Requirement:TranslatethefinancialstatementsintoU.S.dollars,andTheresultofcomputationshouldberetainedtwodecimals.2.Acorporation(U.S)purchasedequipmentworth2millionGermanmarksfromBcorporation(Germany)atthebeginningoftheyear.ThetransactionwasdenominatedinGermanmarks.TheexchangerateatthetimewasUS$0.65=1DM.However,duetoastrongereconomy,theGermanmarkhadstrengthenedagainsttheU.S.dollarresultinginanexchangerateofUS$0.70=1DMatyearend.Determinethetransactiongain/lossthatAcorporationwillreportinitsincomestatement.Determinethetransactiongain/lossBcorporationwillreportinitsyear-endincomestatement.Why?3、AssumethataU.S.firmimportsequipmentfromGermanyonMarch1for200,000eurowhentheexchangerateis$1.3112pereuro.paymentineurodoesnothavetobemadeuntilApril30.AssumethatonMarch31,theexchangerateis$1.3500andonApril30is$1.3300,Also,assumethatthefirmsbookareclosedattheendofthecalendarquarter.Pleasewriteouttheentriesrelatedto purchasefromaccordingtothetwo-transactionapproach.1、IncomeStatement(ineuro)FortheYearEndingDecember31,2009TranslationrateTranslationamount($)Sales31,5001.310141268.15(1)ExpensesCostofgoodssold(18,000)1.3101(23581.8)(1)Depreciation(2,750)1.3101(3602.78)(1)Other(4,500)1.3101(5895.45)(1)Taxes(1,500)1.3101(1965.15)(1)Netincome4,7506222.97(1)Dividends2,3751.36443240.45(2)BalanceSheet(ineuro)YearendDecember31,2009TranslationTranslationrateamount($)Cash2,0001.36442728.8(1)Accountsreceivable4,7251.36446446.79(1)Inventories4,7001.36446412.68(1)Fixedassets27,5001.364437521 (2)Accumulated(5,500)1.3644(7504.2)(1)depreciationTotal33,42545605.07(1)Accountspayable6,0001.36448186.4(1)Long-termdebt10,8001.364414735.52(1)Capitalstock6,2001.056510(2)Retainedearnings10,4252982.52(2)CTA13190.63(1)Total33,42545605.07(1)Retainedearnings=6222.97-3240.45=2982.52CTA=45605.07-8186.4-14735.52-6510-2982.52=13190.632、(1)Loss (2’)DM2,000,000×(US$0.7-US$0.65)=US$100,000 (3’)(2) Bcorporationwillreportnogain/lossinitsyear-endincomestatement(2’)sincethetransactionisdenominatedinitshomecurrency(3’).3、1.Mar