On December 31, 2017, Carter Corp

question 59

Essay

On December 31, 2017, Carter Corp.a foreign subsidiary of Barter Corp., had a bank overdraft of $20,000 on one of its bank accounts.Bank overdrafts are an integral part of Carter's cash management policy.
1) Prepare the journal entry to convert the foreign subsidiary from its IFRS financial statements to U.S.GAAP financial statements.
2) Briefly explain why this journal entry is required.

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Definitions:

Extremities

The limbs or appendages of the body, specifically arms, hands, legs, and feet.

Vision Acuity

The clarity or sharpness of vision, usually measured by the ability to discern letters or numbers at a standardized distance on an eye chart.

Preschool

An educational establishment or learning space offering early childhood education to children prior to the commencement of compulsory education at primary school.

HOTV Chart

A vision testing chart used primarily for children, featuring the letters H, O, T, and V to assess visual acuity.