A French Subsidiary of a U

question 35

Essay

A French subsidiary of a U.S. firm keeps accounting records in euros. The U.S. dollar is considered the subsidiary's functional currency. Assume the following exchange rates:
Required:
Remeasure the following items from the December 31, 20X6 trial balance of the subsidiary:
a.Sales made evenly throughout 20X6 = 100,000 euros
b.Cost of goods sold = 30,000 euros5,000 euros purchased July 1, 20X525,000 euros purchased July 1, 20X6
c.Salary expense for 20X6 = 40,000 euros
d.Land = 1,000,000 euros200,000 euros purchased January 1, 20X5800,000 euros purchased July 1, 20X6

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Definitions:

Splenic Vein

A blood vessel that drains blood from the spleen, pancreatic veins, and the short gastric veins, and empties into the portal vein.

Hepatic Portal Vein

The hepatic portal vein is a blood vessel that carries nutrient-rich blood from the gastrointestinal tract and spleen to the liver for filtering and processing.

Superior Mesenteric Vein

A major vein draining blood from the small intestine, ascending colon, and part of the transverse colon.

Popliteal Vein

A vein located behind the knee that drains blood from the lower leg and transports it back towards the heart.