Preston Company is a U.S. corporation that maintains a 100%…

Preston Company is a U.S. corporation that maintains a 100% investment in Seida, Inc., a non-US company.

Seida’s financial statements are on the page following this page.

At 12/31/20×1, Preston Company will prepare consolidated financial statements that include Seida, Inc.

Therefore, they will have to convert Seida’s financials from the local currency amounts to U.S. dollar amounts. Below are the relevant exchange rates and some additional information:

Relevant Exchange Rates and additional information

Exchange rate for when common stock issued $ 2.08

Exchange rate for when property, plant and equipment acquired $ 1.98

Retained earnings translated as of Jan. 1, 20×1 $ 396,520

Inventory acquired evenly throughout the year

Dividends were declared on Apr. 1, 20×1

 

Relevant currency exchange rates:

January 1, 20×1 $ 1.67

April 1, 20×1 $ 1.59

September 1, 20×1 $ 1.63

December 31, 20×1 $ 1.60

Weighted average rate for 20×1 $ 1.62

Additional information:

• The gain on sale was associated with a 9/1/20×1 transaction.

• The 12/31/20×0 financial statements reported an adjustment to convert the subsidiary’s financial statements for consolidation was $85,000.

Required

A. Assuming the LCU is Seida’s functional currency, prepare a schedule in which you apply the appropriate rate to convert Seida’s financials into the U.S. dollar amounts. (Note: Please use an Excel schedule for this item)

B. Suppose:

a. Seida’s local currency is the South African rand and

b. Seida’s functional currency is the Canadian dollar.

Briefly explain the steps (and applicable method used, i.e., current rate or temporal method) required in converting from (1) Seida’s local currency, the rand, to the Canadian dollar, and (2) from the Canadian dollar to Preston’s reporting currency, the U.S. dollar. Your explanation should address the accounting for the translation or remeasurement adjustment, as applicable.

How to Get Help with your Assignment in 3 mins

  1. Place Your Assignment Request in under 3 mins

    To access our online order form, click the "Order Now" button below.
  2. Complete the Payment

    Click on checkout link at the bottom of the order page to pay.
  3. Download Your Assignment

    Once we receive payment, one of our highly qualified essay writing experts will work on your assignment and complete it within your selected deadline.

What does the completed assignment have?

  • Thorough Research and High-Quality Essay Writing
  • Native UK, US, Canadian, Australian Writers
  • Up-to-date Sources Only (Less than 5 years)
  • 24/7 Online Support
  • Essay in 1,3, 6, 8, 12, 16, 20 hours +...!
  • 100% Plagiarism Free
  • 100% Privacy Guarantee
  • Times New Roman, 12pt
  • Any Referencing Styles (APA, MLA, Harvard, Chicago, Turabian...)
  • 275+ Words per page
  • Single/Double Spaced Papers
  • Plagiarism Report on Request

Why do college students choose our assignment help service?

  • list icon instant gradesExcellent Grades Guaranteed! (A+ or B Minimum)
  • list icon instant grades Privacy Guarantee - No one will ever know!
  • list icon instant gradesAlways delivered on time
  • list icon instant grades High-Quality Essays
  • list icon instant grades24/7 Instant Online Support
  • list icon instant gradesTitle Page --- FREE!
  • list icon instant gradesTable of Contents --- FREE!
  • list icon instant gradesReferences List ---FREE!
  • list icon instant gradesRevisions---FREE!
  • list icon instant gradesPlagiarism Report ---FREE!
  • list icon instant gradesEditing before submitting it to you ---FREE!