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11) Accounts representing an allowance for uncollectible accounts are converted into U.S. dollars at A) historical rates when the U.S. dollar is the functional currency. B) current rates only when the U.S. dollar is the functional currency. C) historical rates regardless of the functional currency. D) current rates regardless of the functional currency. 12) Palk.
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9) Plane Corporation, a U.S. company, owns 100% of Shipp Corporation, a Libyan company. Shipp's equipment was acquired on the following dates (amounts are stated in Libyan dinars): Jan. 01, 2011 Purchased equipment for 40,000 dinars Jul. 01, 2011 Purchased equipment for 80,000 dinars Jan. 01, 2012 Purchased equipment for 50,000 dinars Jul. 01,.
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11) Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011. The following trial balance information is available for third quarter: AccountDebitCredit Cash$98,000 Accounts Receivable285,000 Inventory750,000 Fixed assets600,000 Accounts Payable$300,000 Common Stock50,000 Retained Earnings80,000 Sales4,400,000 Administrative expense312,000 Cost of goods sold2,650,000 Loss on sale of securities sold on July 3075,000 Annual equipment overhaul costs paid on August 160,000 Totals$4,830,000$4,830,000 Additional information: At.
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19) Snodberry Catering has five operating segments, as summarized below: Buffet Alcohol Bakery Wait Service Bar Service Sales to outside entities 26,000 110,000 22,000 24,000 5,000 Intersegment sales -0- 20,000 4,000 -0- 56,000 Cost of goods sold 16,000 50,000 19,000 23,000 69,000 Operating Expenses 9,000 70,000 6,000 2,000 4,000 Interest Expense -0- 5,000 -0- 2,000 1,000 Income Tax Expense -0- 2,000 -0- -0- (3,000) Assets 2,000 22,000 2,000 1,000 1,000 Required: Determine which of the operating segments of Snodberry Catering are reportable segments for the period shown. 20) Tillman Fabrications has five operating segments, as summarized below: Wood Plastic Metal Paper Fabric Sales to outside.
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14) The table below provides either a direct or indirect quote for a given foreign currency unit, and the related units of that foreign currency. Quote Foreign Currency Units U.S. Dollars 1 fcu : $0.0065 40,000 fcu $1 : .0098 fcu 980 fcu 1 fcu : $0.0796 80,000 fcu $1 : .0688 fcu 55,040 fcu 1 fcu : $0.3597 110,000 fcu $1 : .8443.
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7) For internal decision-making purposes, Geogh Corporation identifies its industry segments by geographical area. For 2011, the total revenues of each segment are provided below. There are no intersegment revenues. Total Revenues Canada$980,000 United States1,410,000 Mexico1,260,000 South America430,000 China710,000 Russia660,000 Australia370,000 European Union1,220,000 Other European1,650,000 Total revenues$8,690,000 Required: 1. Which operating segments will be considered reporting segments based on the revenue test? 2. What is.
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15) Par Industries, a U.S. Corporation, purchased Slice Company of New Zealand for $1,411,800 on January 1, 2011. Slice's functional currency is the New Zealand dollar (NZ$). Slice's books are kept in NZ$. The book values of Slice's assets and liabilities were equal to fair values, with the exception of.
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10) Phim Inc., a U.S. company, owns 100% of Sera Corporation, a New Zealand company. Sera's equipment was acquired on the following dates (amounts are stated in New Zealand dollars as NZ$): Jan. 01, 2011 Purchased equipment for NZ$40,000 Jul. 01, 2011 Purchased equipment for NZ$80,000 Jan. 01, 2012 Purchased equipment for NZ$50,000 Jul..
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8) Plate Corporation, a US company, acquired ownership of Saucer Corporation of Switzerland on January 1, 2011 for $1,500,000 when Saucer's stockholders' equity in Swiss francs (SF) consisted of 700,000 SF Capital Stock and 300,000 SF Retained Earnings. The exchange rate for Swiss francs was $1.20 on January 1. All.
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7) On January 1, 2011, Pilgrim Corporation, a U.S. firm, acquired ownership of Settlement Corporation, a foreign company, for $168,000, when Settlement's stockholders' equity consisted of 300,000 local currency units (LCU) and retained earnings of 100,000 LCU. At the time of the acquisition, Settlement's assets and liabilities were fairly valued.
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20) Meric Corporation (a U.S. company) began operations on January 1, 2011, when the owner borrowed $150,000 to start the company. In the first month of operations, Meric had the following transactions: January 3, 2011Bought inventory for 100,000 Brazilian real on account. Must be paid with Brazilian real. January 8, 2011Sold 60%.
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Exercises 1) For each of the 12 accounts listed in the table below, select the correct exchange rate to use when either remeasuring or translating a foreign subsidiary for its U.S. parent company. Codes C = Current exchange rate H = Historical exchange rate A = Average exchange rate U.S. dollar isThe foreign the functionalcurrency is the currencyfunctional.
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10) Johnson Corporation (a U.S. company) began operations on December 1, 2010, when the owner contributed $100,000 of his own money to establish the business. Johnson then had the following import and export transactions with unaffiliated Mexican companies: December 12, 2011Bought inventory for 150,000 pesos on account. Invoice denominated in pesos. December 15,.
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11) Puddle Incorporated purchased an 80% interest in Soake Company, located in England. Puddle paid $1,560,000 on January 1, 2011, at a time when the book values of Soake equaled the fair values. Any excess cost/book value differential was attributed to a patent with a five-year remaining useful life. Soake's.
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15) Osprin Corporation has three operating segments, as summarized below: Capsule Pill Liquid Total Sales to retailers 25,000 35,000 5,000 65,000 Intersegment sales 4,000 10,000 2,000 16,000 Operating Expenses 10,000 18,000 5,000 33,000 Interest Expense 2,000 3,000 1,000 6,000 Income Tax Expense 4,000 6,000 1,000 11,000 Assets 12,000 3,000 16,000 31,000 Required: 1. Using the revenue test, what is the minimum amount of revenue of a reportable segment? 2. Using the operating profit or loss test, what is the minimum amount of operating profit or loss of.
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18) Plymouth Corporation (a U.S. company) began operations on September 1, 2011, when the owner borrowed $250,000 to establish the business. Plymouth then had the following import and export transactions with unaffiliated Chinese companies: September 6, 2011Bought material inventory for 100,000 yuan on account. Invoice denominated in               yuan. September 18, 2011Sold.
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17) Quantex Corporation has five operating segments, as summarized below: Household Industrial Packaging Storage Services Sales to outside entities 700,000 4,300,000 400,000 1,700,000 100,000 Intersegment sales 50,000 600,000 800,000 200,000 -0- Cost of goods sold 300,000 2,700,000 700,000 900,000 -0- Operating Expenses 200,000 1,300,000 200,000 600,000 30,000 Interest Expense 10,000 40,000 5,000 -0- -0- Income Tax Expense 60,000 210,000 70,000 100,000 18,000 Assets 540,000 1,900,000 1,600,000 70,000 32,000 Required: Determine which of the operating segments of Quantex Corporation are reportable segments for the period shown. 18) Rollins Publishing has five operating segments, as summarized below: Fiction Non-fiction Reference Childrens Periodicals Sales to outside entities 870,000 416,000 796,000 236,000 517,000 Intersegment sales -0- -0- 80,000 -0- 50,000 Cost.
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5) The following data relate to Falcon Corporation's industry segments: Sales to ExternalIntersegment Industry SegmentCustomers     Sales          Assets Oil Exploration$80,000$$310,000 Refinery240,000720,000 Plastics20,000$20,000120,000 Chemicals220,000160,000980,000 Solar Power20,00075,000270,000 Totals$580,000$255,000$$2,400,000 Required: 1. Which of Falcon's operating segments would be considered reporting segments under the "revenue" test? 2. Which of Falcon's operating segments would be considered reporting segments under the "asset" test? 6) For internal decision-making purposes, Falcon.
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Use the following information to answer the question(s) below. Bertram and Ernest share profits and losses equally after salary and interest allowances. Bertram and Ernest receive salary allowances of $40,000 and $60,000, respectively, and both partners receive 10% interest on their average capital balances. Average capital balances are calculated at the.
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Multiple Choice Questions 1) A U.S. firm has a Belgian subsidiary that uses the British pound as its functional currency. According to GAAP, the U.S. dollar from Belgian unit's point of view will be A) its only foreign currency. B) its local currency. C) its current rate method currency. D) its reporting currency. 2) Selvey Inc..
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11) Which one of the following operating segment disclosures is not required by GAAP? A) Total Assets B) Equity C) Intersegment sales D) Extraordinary items 12) Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals? A) Assets B) Liabilities C) Revenues D) Profit or loss 13) What is.
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9) Illiana Corporation has several accounting issues with respect to its interim financial statements for the first quarter of calendar 2011. Required: For each of the independent situations given below, state whether or not the method proposed by Illiana is acceptable. Justify each answer with appropriate reasoning. 1. Illiana will not perform.
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12) On December 15, 2011, Electronix Company purchased inventory from a foreign supplier for 2,000,000 foreign currency units (fcu's). Payment will be made on February 13, 2012. On December 15, 2011, to hedge the transaction, Electronix signed a forward contract to buy 2,000,000 fcu's in 60 days. Electronix uses a.
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Exercises 1) The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows: Electronics$1,760,000 Hardware3,420,000 Plumbing490,000 Total$5,670,000 The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets.
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Multiple Choice Questions 1) Under the Uniform Partnership Act, loans made by a partner to the partnership are treated as A) liabilities to the partnership for which interest shall be paid from the date of the advance. B) advances to the partnership that are carried in the partners' capital accounts. C) Accounts Payable of.
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7) On November 1, 2010, Stateside Company (a U.S. manufacturer) sold an airplane for 1 million New Zealand dollars (NZ$) to New Zealand company Aukland Corporation. Stateside will receive payment on January 30, 2011 in New Zealand dollars. In order to hedge the accounts receivable position, Stateside entered into a.
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3) For internal decision-making purposes, Calam Corporation's operating segments have been identified as follows: Operating ProfitIdentifiable Operating SegmentRevenuesor LossAssets Appliances$110,000$(15,000)$120,000 Clothing130,000(75,000)40,000 Lawn and Garden85,00015,00015,000 Auto Accessories100,00010,00020,000 Service Contracts65,000(5,000)10,000 Catalog Sales230,0005,00050,000 Home Furnishings280,00025,000100,000 Tools240,00030,00025,000 $1,240,000(10,000)$380,000 Required: 1.In applying the "operating profit or loss" test to identify reporting segments, what is the test value for Calam Corporation? 2.Using the "reported profit or loss" test, which of Calam's.
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13) Maxtil Corporation estimates its income by calendar quarter as follows for 2011: 1st2nd3rd4th2011 QuarterQuarterQuarterQuarterTotal Est. Income$40,000$30,000$20,000$20,000$110,000 Income tax rates applicable to Maxtil: From: $0 to $50,00015% From: $50,001 to $75,00025% Over: $75,00035% Required: Determine Maxtil's estimated effective tax rate. 14) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of.
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Exercises 1) Anna and Bess share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Cal into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Cal are: Anna (60%)$300,000 Bess (40%)300,000 Total$600,000 Required: 1. Prepare the journal entry(s) for the admission of.
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14) On January 1, 2011, Psalm Corporation purchased all the stock of Solomon Corporation for $481,400 when Solomon had capital stock of 180,000 pounds (£) and retained earnings of 90,000£. The book value of Solomon's assets and liabilities represented the fair value, except for equipment with a 5-year life that.
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12) Lincoln Corporation, a U.S. manufacturer, both imports needed materials and exports finished products. Their receivables and payables are listed below, prior to year-end adjustments or preparation of the closing entries. Foreign Currency Units Rate at Date of Transaction Per Books in U.S. Dollars Current Rate at 12/31/11 ACCOUNTS RECEIVABLE Japanese yen 14,678,000 $0.0109007 160,000 $0.0120 Euros 50,000 1.2372 61,860 1.4235 Hungarian forint 50,000,000 0.0044 220,000 0.0053   TOTAL 441,860 ACCOUNTS PAYABLE Euros 50,000 1.2378 61,890 $1.4235 Mexican pesos 1,250,000 0.0799 99,875 0.0845 Indian.
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11) Wild West, Incorporated (a U.S. corporation) sold inventory to a company in the Philippines for 1,600,000 pesos on account on February 1, 2011, with payment expected in 90 days. Wild West entered into a forward contract to hedge this transaction, and properly accounts for the transaction as a cash.
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Exercises 1) On November 1, 2011, Portsmith Corporation, a calendar-year U.S. corporation, invested in a purely speculative contract to purchase 1 million yen on January 30, 2012, from the Karoke Trading Company, a Japanese brokerage firm. Portsmith agreed to purchase 1,000,000 yen from Karoke at a fixed price of $0.0100 per.
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Multiple Choice Questions 1) Similar operating segments may be combined if the segments have similar economic characteristics. Which one of the following is a similar economic characteristic under GAAP? A) The segments' management teams B) The tax reporting law sections C) The distribution method for products or services D) The expected rates of return and.
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5) On November 1, 2010, Mayberry Corporation, a U.S. corporation, purchased from Cantata Corporation, a Mexican company, some machinery that cost 1,000,000 pesos. The invoice was payable in pesos on January 30, 2011. To hedge against rapid changes in the peso, Mayberry entered into a forward contract on November 1,.
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Multiple Choice Questions 1) Which of the following hedging strategies would a business most likely use? A) An importer will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge an exposed net asset position. B) An importer will want to hedge his foreign denominated accounts payable and.
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