Assignment
Required:
1. Prepare a schedule translating the trial balance from British pounds into U.S. dollars. Assume the pound is the functional currency.
2. Assume that Pace uses the fully adjusted equity method. Record all journal entries that relate to its investment in the British subsidiary during 20X8. Provide the necessary documentation and support for the amounts in the journal entries, including a schedule of the translation adjustment related to the differential.
3. Prepare a schedule that determines Pace's consolidated comprehensive income for 20X8.
Prepare and submit only one Excel spreadsheet answering all of the requirements.
Use Excel formulas to make or evidence each of your calculations of each/any dollar amounts. Do not enter any dollar amounts, directly, for the answers to the requirements unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file where required to answer each of the requirements.
Name your Excel file when you submit it: MyNameModuleXOption1or2.
Requirements:
• Show calculations for all questions.
• Support writing portion of the assignment (if applicable) with credible sources.
• Use terms, evidence, and concepts from class readings, including professional business language.
References used in lecture:
Chapter 11 in Advanced Financial Accounting (pp. 548-556, which covers Multinational Accounting including the Accounting Issues related to Foreign Currency Exchange Rates)
Chapter 12 in Advanced Financial Accounting (pp. 621-650, Multinational Accounting Issues in Financial Reporting and Translation of Foreign Entity Financial Statements; and pp. 653-656, Disclosure Requirements Under ASC830)
Ernst & Young Foundation. (2017). Foreign currency - lecture notes.
Ernst & Young Foundation. (2017). Foreign current - PowerPoint presentation.
Ernst and Young Foundations. (2010). Foreign currency examples.
Ernst and Young Foundations. (2010). Foreign currency solutions.
Rashty, J. (2014). Foreign currency matters. CPA Journal, 84(3), 54-56.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.