rporation a British subsidiary of Polka Corporation a US com

rporation a British subsidiary of Polka Corporation (a U.S. company) was ed by Polka on January 1, 2014 in exchange for all of the subsidiary\'s common stock. he US dollar is Stripe\'s functional currency, but it keeps its records in pounds. Stripe has now ended its second year of operations on December 31, 2015. Relevant exchange rates are January 01, 2014-16-$1.60 April 01, 2014-16-$1.62 December 31, 2015 16-$1.57 2015 average rate 1E-$1.56 Retained Earnings-$365,000 Stripe\'s adjusted trial balance is presented below for the calendar year 2015. Required: Prepare Stripe\'s Remeasurement working papers. In Pounds In US dollars 172,00057 2Z00 308,000 57 7835co 98,0007 S 400,000 17 100,000 0 10,000 117,000 s6 720 Cash Accounts receivable Notes receivable Building Land Depreciation expense Other expenses Salary expense 376000 131 Total debits Credits Accumulated depreciation E1 £17,500 200,000 550,000 | |-60 213,500 e 600,000 1157 c0 Accounts payable Common stock Retained earnings Sales revenue dco Total credits 61.581.000

Solution

Stripe corporation remeasurement working papers Debits : Cash 172000 * $1.57 $270040 Accounts receivable 308000 * $1.57 $483560 Notes receivable 98000 * $1.57 $153860 Building 400000 * $1.62 $648000 Land 100000 * $1.62 $162000 Depreciation expense 10000 * $1.62 $16200 Other expenses 117000 * $1.56 $182520 Salary expenses 376000 * $1.56 $586560 Total debits $2502740 Credits : Accumulated depreciation 17500 * $1.62 $28350 Accounts payable 200000 * $1.57 $314000 Common stock 550000 * $1.60 $880000 Sales revenue 600000 * $1.56 $936000 Retained earnings $365000 Total credits $2523350 Debit differential $20610