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Rolfe Company (a U.S-based company) has a subsidiary in Nigeria where the local currency unit...

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Accounting

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Rolfe Company (a U.S-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2016, the subsidiary had the following balance sheet (amounts are in thousands (000's)): NGN 15 Cash Inventory Land Building Accumulated depreciation ,120 Notes payable 10,800 Common stock NGN 20,160 20,160 10,080 4,080 Retained earnings 40,800 20,400 NGN 50,400 NGN 50,400 The subsidiary acquired the inventory on August 1, 2016, and the land and building in 2010. It issued the common stock in 2008 During 2017, the following transactions took place 2017 Feb. 1 May 1 June 1 Aug. 1 Sept.1 Oct. 1 Nov. 1 Dec. 1 Dec. 31 Paid 8,080,000 NGN on the note payable Sold entire inventory for 16,800,000 NGN on account Sold land for 6,080,000 NGN cash Collected all accounts receivable. Signed long-term note to receive 8,080,000 NGN cash Bought inventory for 20,080,000 NGN cash. Bought land for 3,080,000 NGN on account Declared and paid 3,080,000 NGN cash dividend to parent. Recorded depreciation for the entire year of 2,040,000 NGN

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