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Question: on january 1 20x5 pirate company acquired all of the...

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On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $156,600 Ships net assets on the date of acquisition were 700,000 kroner (NKr). On January 1, 20X5, the book and fair values of the Norwegian subsidiarys identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and patents acquired. The fair value of Ships property, plant, and equipment exceeded its book value by $18,000. The remaining useful life of Ships equipment at January 1, 20X5, was 10 years. The remainder of the differential was attributable to a patent having an estimated useful life of 5 years. Ships trial balance on December 31, 20X5, in kroner, follows: Debits Credits Cash Accounts Receivable (net) Inventory Property, Plant &Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Cost of Goods Sol Operating Expenses Depreciation Expense Dividends Paid Total 159,000 212,000 297, 000 623,000 NKr NKr 162,ΘΘΘ 192, ΘΘΘ 460, ΘΘΘ 240, Θ00 794,000 423, ΘΘΘ 116, 000 68, ΘΘΘ 54, ΘΘΘ NKr1, 952, ΘΘΘ NKr1, 952, ΘΘΘAdditional Information: 1. Ship uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X4, and ending inventory was acquired on December 15, 20X5. Purchases of NKr420,000 were made evenly throughout 20X5 2. Ship acquired all of its property, plant, and equipment on July 1, 20X3, and uses straight-line depreciation. 3. Ships sales were made evenly throughout 20X5, and its operating expenses were incurred evenly throughout 20X5 4. The dividends were declared and paid on July 1, 20X5 5. Pirates income from its own operations was $226,000 for 20X5, and its total stockholders equity on January 1, 20X5, was $3,600,000. Pirate declared $190,000 of dividends during 20X5 6. Exchange rates were as follows NKr $ July 1, 20X3 December 30, 20X4 January 1, 20X5 July 1, 20X5 December 15, 20X5 December 31, 20X5 Average for 20X5 10.18 10.18 10.19 Θ . 205 10.21 Required: a. Prepare a schedule translating the trial balance from Norwegian kroner into U.S. dollars. Assume the krone is the functional currency. (If no adjustment is needed, select no entry necessary)Cash Accounts Receivable (net) Inventory Property, Plant and Equipment Cost of Goods Sold Operating Expenses Depreciation Expense Dividends Paid Total Total Debits Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total Total Creditsb. Assume that Pirate uses the fully adjusted equity method. Record all journal entries that relate to its investment in the Norwegian subsidiary during 20X5. Provide the necessary documentation and support for the amounts in the journal entries, including a schedule of the translation adjustment related to the differential. (If no entry is required for a transaction/event, select No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the purchase of Ship Inc Note: Enter debits before credits. Date General Journal Debit Credit January 01c. Prepare a schedule that determines Pirates consolidated comprehensive income for 20X5. (Amounts to be deducted should be indicated with a minus sign.) Income from Pirates operations for 20X5, exclusive Pirates Net Income Pirates Consolidated Comprehensive Income

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