prepare a statement of Retained Earnings and Comprehensive Income using the values from Week 2.
- Apply error corrections to the retained earnings statement.
- Calculate foreign currency translation.
- Apply hedging or derivative transaction into statement.
Prepare a Statement of Owner's Equity, referring to the balance sheet results as well as the statements prepared for the Week 2 Individual Assignment.
Submit the Statement of Retained Earnings in a Microsoft® Excel® spreadsheet and the Statement of Owner's Equity and Comprehensive Income.
The following should be on your excel sheet to properly respond to the above questions:
With the general data provided the following Financial Statements for ABC Company:
-Statement of Retained Earnings
-Statement of Owners Equity
-Apply error corrections to appropriate statement
-Calculate foreign currency translation and apply to appropriate statement
-Apply Hedging/Derivative transaction to appropriate statement
Fact situation for "calculate foreign currency translation":
ABC Company acquired a Canadian Subsidiary whose only asset was land.
ABC Company purchased the subsidiary on 12/31/10 for CA $5,250 and retaines 100% interest in the subsidiary.
Go to www.x-rates.com and use the historic lookup feature to determine the exact exchange rates on 12/31/10, 12/31/11, 12/31/12 and 12/31/13.
Required:
1. Build a schedule showing the foreign currency translation by year showing the amount to be booked to "other comprehensive income" which is part of stockholders equity.
Overall assignment guidance:
To build the Statement of Retained Earnings and the Statement of Owners Equity use the trial balance you built in week 2. You should not have to do any caluclations for the week 3 requirements with the exception of the "foreign currency translation" above.
Any help is greatly appreciated