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    Translation of foreign currency financial statements

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    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

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    Solution Summary

    The translations of foreign currency financial statements are examined.