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Translation of foreign currency financial statements

Foreign Currency Financial Statements

Financial Statement Translation

Prepare financial statements for a foreign subsidiary and then translate them into U.S. dollars. The first item has been completed for you as an example.

Fenwicke Company Subsidiary
Income Statement
LCU U.S. Dollars
Rent revenue 60,000 x $1.90 A = $114,000
Interest expense
Depreciation expense
Repair expense
Net income

Statement of Retained Earnings
LCU U.S. Dollars
Retained earnings 1-Jan -0- -0-
Net income
Dividends paid
Retained earnings, 12/31

Balance Sheet
LCU U.S. Dollars
Accounts receivable
Accumulated depreciation
Total assets
Interest payable
Note payable
Common stock
Retained earnings
Translation adjustment
Total liabilities and equities


Solution Summary

The translations of foreign currency financial statements are examined.