MINISTRY OF EDUCATION AND TRAINING INTERNATIONAL ACCOUNTING

NATIONAL ECONOMICS UNIVERSITY

Mode of study: Full time. Intake: 61
Date: 07/08/2021 Slot: 01
School of Accounting & Auditing Online Final Test - Allowed time: 75 minutes

TEST NO.1
QUESTION 1 (2 points): What accounting issues arise for a company as a result of engaging in international trade?
QUESTION 2 (3 points): Milla Corporation, whose reporting currency is the franc (F), establishes a foreign
subsidiary, whose reporting currency is the escudo (E). Complete data is provided in next page.
Requirements:
Prepare the subsidiary’s financial statements in escudo (E)? (Income statement, Statement of retained earnings,
Balance sheet).
QUESTION 3: (2 point) - Milla Corporation in Question 2
If the foreign’s subsidiary’s functional currency is the escudo (E); translate the subsidiary’s financial statements
into francs (F) in order to prepare the consolidated financial statements?
QUESTION 4: (3 points)
Producee Company purchased inventory from a Japanese company on December 18, 2019. Payment of 5,000,000
yen (×) was due on January 18, 2020. Exchange rates between the dollar and the yen on December 18, 2019: 1 yen
= $ 0.0080; 31 Dec: 1 yen = 0.0082; 18, Jan 2020: 1 yen = 0.0083).
Requirement: Prepare all journal entries for Producee Co. in connection with the purchase and payment.
(purchase/year-end adjustment/payment)
 MINISTRY OF EDUCATION AND TRAINING INTERNATIONAL ACCOUNTING
NATIONAL ECONOMICS UNIVERSITY
Mode of study: Full time. Intake: 61
Date: 07/08/2021 Slot: 01
School of Accounting & Auditing Online Final Test - Allowed time: 75 minutes

QUESTION 2 (3 points): Milla Corporation, reporting currency is the franc (F), foreign subsidiary, whose
reporting currency is the escudo (E).
1. On 1 Jan, Year 1; Milla contributes Cash of E 5,000 to the subsidiary in exchange for Common Stock, and the
subsidiary purchases Land for E 15,000. 2. On Feb 1, Year 1; the subsidiary purchases Equipment for E 4,000.
3. Sales, Salary expense ad other operating expenses are incurred evenly throughout Year 1
4. The subsidiary declares dividends of E 8,000 on December 1, Year 1
5. On December 31, Year 1, the subsidiary reports the following trial balance (in escudos):
Accounts Debits Credits Relevant exchange rates for Year 1 (franc per escudo):
Cash 3,000 - 01, Jan: F1.71
Accounts receivable 2,000 - 01, Feb: 1.69
Equipment 4,000 - Weighted average: 1.66
Accumulated depreciation - 1,000
1, Dec: 1.64
Land 15,000 -
Accounts payable - 1,000 31, Dec: 1.62
Note payable - 15,000
Common stock - 5,000
Dividends (declared 12/1/Y1) 8,000 -
Sales - 25,000
Salary expense 5,000 -
Depreciation expense 1,000 -
Other operating expenses 9,000 -
Total 47,000 47,000
Ghi chú:
+ Cán bộ coi thi không giải thích gì thêm. Đề thi được mở sách. + Giảng viên trực đề: Nguyễn Hà Linh, điện thoại: 0818588886