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  • HW Translation Suffolk

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    John Livanos
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    The document shows accounting balances in British pounds and US dollars for a company over 2006 and 2007. It includes assets, liabilities, equity accounts, income statement accounts, and currency exchange rates. It also calculates the cumulative translation adjustment needed to reconcile net assets from one year to the next due to currency fluctuations.

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    The document shows accounting balances in British pounds and US dollars for a company over 2006 and 2007. It includes assets, liabilities, equity accounts, income statement accounts, and currency exchange rates. It also calculates the cumulative translation adjustment needed to reconcile net assets from one year to the next due to currency fluctuations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views3 pages

    HW Translation Suffolk

    Uploaded by

    John Livanos
    The document shows accounting balances in British pounds and US dollars for a company over 2006 and 2007. It includes assets, liabilities, equity accounts, income statement accounts, and currency exchange rates. It also calculates the cumulative translation adjustment needed to reconcile net assets from one year to the next due to currency fluctuations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Accounts

    Cash
    A/R
    Inventory
    PP&E
    A/P
    Long Term Debt
    Common Stock
    Retained Earnings 1/1/07
    Sales
    COGS
    Depreciation
    Other Expenses
    Dividends Paid
    Total Trial Balance

    1,500,000
    5,200,000
    18,000,000
    36,000,000
    (1,450,000)
    (5,000,000)
    (44,000,000)
    (8,000,000)
    (28,000,000)
    16,000,000
    2,000,000
    6,000,000
    1,750,000
    0

    Exchange
    Current
    Current
    Current
    Historical
    Current
    Current
    Historical
    Composite
    Average
    Historical
    Historical
    Average
    Historical

    Exch. Date
    12/31/2007
    12/31/2007
    12/31/2007
    2006
    12/31/2007
    12/31/2007
    12/31/2007
    Composite
    2007
    2006
    2006
    2007
    1/30/2007

    Rate
    1.68
    1.68
    1.68
    1.60
    1.68
    1.68
    1.60
    See Below
    1.66
    1.60
    1.60
    1.66
    1.65

    $
    2,520,000
    8,736,000
    30,240,000
    57,600,000
    (2,436,000)
    (8,400,000)
    (70,400,000)
    (12,840,000)
    (46,480,000)
    25,600,000
    3,200,000
    9,960,000
    2,887,500

    Cumulative Translation Adjustment


    187,500

    Current
    Average

    Retained Earnings 1/1/06


    Net Income (2006)

    (6,000,000)
    (2,000,000)

    1/01/2006
    2006

    1.60
    1.62

    (9,600,000)
    (3,240,000)

    Retained Earnings 12/31/06

    (8,000,000)

    Determination of translation Adj.


    Net Assets 1/1/06
    Net Income (2006)
    Translation Adjustment

    50,000,000
    2,000,000
    52,000,000

    1.64
    1.64
    1.60

    82,000,000
    3,280,000
    83,200,000

    1.60
    1.62
    1.64

    80,000,000
    3,240,000
    85,280,000

    2,000,000
    40,000
    2,040,000

    Determination of translation Adj.


    Net Assets 1/1/07
    Net Income (2007)
    Dividends
    Translation Adjustment

    52,000,000
    4,000,000
    (1,750,000)
    54,250,000

    1.64
    1.68
    1.65
    1.64

    85,280,000
    6,720,000
    (2,887,500)
    88,970,000

    1.68
    1.66
    1.65
    1.68

    87,360,000
    6,640,000
    (2,887,500)
    91,140,000

    (2,080,000)
    80,000
    0
    (2,170,000)
    (2,000,000)
    (130,000)

    (12,840,000)

    40,000

    Accounts
    Cash
    A/R
    Inventory
    PP&E
    A/P
    Long Term Debt
    Common Stock
    Retained Earnings 1/1/07
    Sales
    COGS
    Depreciation
    Other Expenses
    Dividends Paid
    Total Trial Balance

    1,500,000
    5,200,000
    18,000,000
    36,000,000
    (1,450,000)
    (5,000,000)
    (44,000,000)
    (8,000,000)
    (28,000,000)
    16,000,000
    2,000,000
    6,000,000
    1,750,000
    0

    Exchange
    Current
    Current
    Current
    Current
    Current
    Current
    Historical
    Composite
    Average
    Average
    Average
    Average
    Historical

    Exch. Date
    12/31/2007
    12/31/2007
    12/31/2007
    12/31/2007
    12/31/2007
    12/31/2007
    2006
    Composite
    2007
    2007
    2007
    2007
    1/30/2007

    Rate
    1.68
    1.68
    1.68
    1.68
    1.68
    1.68
    1.60
    See Below
    1.66
    1.66
    1.66
    1.66
    1.65

    $
    2,520,000
    8,736,000
    30,240,000
    60,480,000
    (2,436,000)
    (8,400,000)
    (70,400,000)
    (12,840,000)
    (46,480,000)
    26,560,000
    3,320,000
    9,960,000
    2,887,500

    Cumulative Translation Adjustment


    4,147,500

    Current
    Average

    Retained Earnings 1/1/06


    Net Income (2006)

    (6,000,000)
    (2,000,000)

    1/01/2006
    2006

    1.60
    1.62

    (9,600,000)
    (3,240,000)

    Retained Earnings 12/31/06

    (8,000,000)

    Determination of translation Adj.


    Net Assets 1/1/06
    Net Income (2006)
    Translation Adjustment

    50,000,000
    2,000,000
    52,000,000

    1.64
    1.64
    1.60

    82,000,000
    3,280,000
    83,200,000

    1.60
    1.62
    1.64

    80,000,000
    3,240,000
    85,280,000

    2,000,000
    40,000
    2,040,000

    Determination of translation Adj.


    Net Assets 1/1/07
    Net Income (2007)
    Dividends
    Translation Adjustment

    52,000,000
    4,000,000
    (1,750,000)
    54,250,000

    1.68
    1.68
    1.68

    87,360,000
    6,720,000
    (2,940,000)

    1.64
    1.66
    1.65

    85,280,000
    6,640,000
    (2,887,500)

    2,080,000
    80,000
    (52,500)

    (12,840,000)

    2,107,500
    2,040,000

    4,147,500

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