Lancer, Inc. (a U.S.-based company), establishes a subsidiary ina foreign country on January 1,...

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Accounting

Lancer, Inc. (a U.S.-based company), establishes a subsidiary ina foreign country on January 1, 2016. The following accountbalances for the year ending December 31, 2017, are stated inkanquo (KQ), the local currency: Sales KQ 190,000 Inventory (boughton 3/1/17) 95,000 Equipment (bought on 1/1/16) 58,000 Rent expense12,000 Dividends (declared on 10/1/17) 22,000 Notes receivable (tobe collected in 2020) 35,000 Accumulated depreciation—equipment17,400 Salary payable 4,800 Depreciation expense 5,800 Thefollowing U.S.$ per KQ exchange rates are applicable: January 1,2016 $0.18 Average for 2016 0.19 January 1, 2017 0.23 March 1, 20170.24 October 1, 2017 0.26 December 31, 2017 0.27 Average for 20170.25 Lancer is preparing account balances to produce consolidatedfinancial statements. Assuming that the kanquo is the functionalcurrency, what exchange rate would be used to report each of theseaccounts in U.S. dollar consolidated financial statements? Assumingthat the U.S. dollar is the functional currency, what exchange ratewould be used to report each of these accounts in U.S. dollarconsolidated financial statements? (Round your answers to 2 decimalplaces.)

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4.2 Ratings (798 Votes)

The Foregin currency Itemsfrom Kanquo Currency to US should be reported as below in case Kanquo is the functional Currency S No Particulars AmountIn KQ Conversion Rate Adopted Rate of Conversion Amount in US after See Answer

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In: AccountingLancer, Inc. (a U.S.-based company), establishes a subsidiary ina foreign country on January 1, 2016....Lancer, Inc. (a U.S.-based company), establishes a subsidiary ina foreign country on January 1, 2016. The following accountbalances for the year ending December 31, 2017, are stated inkanquo (KQ), the local currency: Sales KQ 190,000 Inventory (boughton 3/1/17) 95,000 Equipment (bought on 1/1/16) 58,000 Rent expense12,000 Dividends (declared on 10/1/17) 22,000 Notes receivable (tobe collected in 2020) 35,000 Accumulated depreciation—equipment17,400 Salary payable 4,800 Depreciation expense 5,800 Thefollowing U.S.$ per KQ exchange rates are applicable: January 1,2016 $0.18 Average for 2016 0.19 January 1, 2017 0.23 March 1, 20170.24 October 1, 2017 0.26 December 31, 2017 0.27 Average for 20170.25 Lancer is preparing account balances to produce consolidatedfinancial statements. Assuming that the kanquo is the functionalcurrency, what exchange rate would be used to report each of theseaccounts in U.S. dollar consolidated financial statements? Assumingthat the U.S. dollar is the functional currency, what exchange ratewould be used to report each of these accounts in U.S. dollarconsolidated financial statements? (Round your answers to 2 decimalplaces.)