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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)) Cash Inventory Land Building Accumulated depreciation NGN 20, 080 20,080 10,040 NGN 15,560 Notes payable 10,400 Common stock 4,040 Retained earnings 40,400 (20,200) 2 400Reton NGN 50,200 NGN 50,200 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. Dec. 31 Paid 8,040,000 NGN on the note payable Sold entire inventory for 16,400,000 NGN on account. Sold land for 6,040,000 NGN cash Collected al1 accounts receivable Signed long-term note to receive 8,040,000 NGN cash Bought inventory for 20,040,000 NGN cash. Bought land for 3,040,000 NGN on account. Declared and paid 3,040,000 NGN cash dividend to parent. Recorded depreciation for the entire year of 2,020,000 NGN

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