Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the isle of palms company (iop), a u.s.-based enti

The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in...

50.1K

Verified Solution

Question

Accounting

The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that has been determined as having the Israeli shekel (ILS) as its functional currency. On October 1, 2014, the Israeli subsidiary borrowed 500,000 Swiss francs (CHF) from a bank in Geneva for two years at an interest rate of 5 percent per year. The note payable and accrued interest are payable at the date of maturity. On December 31, 2015, the Israeli subsidiary has the following foreign currency balances on its books: Interest expense CHF 25,000 Interest payable CHF 31,250 Note payable CHF 500,000 Relevant exchange rates between the Israeli shekel (ILS) and Swiss franc (CHF), and between the U.S. dollar (USD) and Israeli shekel (ILS) follow: ILS per CHF USD per ILS October 1, 2014 3.86 0.30 January 1, 2015 3.91 0.29 Average for 2015 3.95 0.27 December 31, 2015 4.02 0.25 a. Determine the Israeli shekel amounts at which the Swiss franc balances should be reported on the Israel subsidiarys December 31, 2015, trial balance.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students