Pagsinuhin, Marjorie A.

AUDSPI 10-11AM
46234 BSA 3 Ms. Leneilyn Poblete

Trial Balance Approach - Closing/Current Rate Method

asset & liab - closing rate income statement items - average
equity - date of transaction
retained earnings:
net income - average
dividends - date of transaction

In USD In PHP
Dr. Cr. Exchange Rate Dr. Cr.
Cash 1,116,000 40.25 44,919,000
Accounts Receivable 729,600 40.25 29,366,400
Inventory 996,000 40.25 40,089,000
Land 600,000 40.25 24,150,000
Buildings 780,000 40.25 31,395,000
Equipment 516,000 40.25 20,769,000
Accounts Payable 768,000 40.25 30,912,000
Short Term Notes Payable 762,000 40.25 30,670,500
Bonds Payable 1,080,000 40.25 43,470,000
Common stock, par P10 1,152,000 40.00 46,080,000
Paid-in capital in excess of par 360,000 40.00 14,400,000

Sales 3,624,000 40.20 145,684,800

Cost of Goods Sold 2,220,000 40.20 89,244,000
Depreciation Expense 120,000 40.20 4,824,000
Other Expenses 786,000 40.20 31,597,200
Income Tax Expense 98,400 40.20 3,955,680
Retained Earnings, Jan. 2 576,000 40.00 23,040,000
Dividends Declared, Sept. 1 360,000 40.10 14,436,000
Total 8,322,000 8,322,000 334,745,280 334,257,300
Translation Gain - OCI 487,980
TOTAL 8,322,000 8,322,000 334,745,280 334,745,280
Trial Balance Approach - Closing/Current Rate Method
Balance Sheet Items Income Statement Items
a. Monetary - Closing Rate Order of Priority:
b. Non-Monetary: 1. date of transaction
i. measured @HC - date of transaction 2. average rate (practicability)
ii. measured @FV - rate at date when FV was
determined

Assuming that the beginning balance of inventory is $900,000, then:

Schedule 1 USD Exchange Rate PHP
Inventory, beg. (assumed) 900,000 40.00 36,000,000
Purchases (squeezed) 2,316,000 40.20 93,103,200
Total Goods Available for Sale 3,216,000 129,103,200
Inventory, end 996,000 40.22 40,059,120
Cost of Goods Sold 2,220,000 89,044,080

In USD In PHP
Dr. Cr. Exchange Rate Dr. Cr.
Cash 1,116,000 40.25 44,919,000
Accounts Receivable 729,600 40.25 29,366,400
Inventory 996,000 40.25 40,089,000
Land 600,000 40.25 24,150,000
Buildings 780,000 40.25 31,395,000
Equipment 516,000 40.25 20,769,000
Accounts Payable 768,000 40.25 30,912,000
Short Term Notes Payable 762,000 40.25 30,670,500
Bonds Payable 1,080,000 40.25 43,470,000
Common stock, par P10 1,152,000 40.00 46,080,000
Paid-in capital in excess of par 360,000 40.00 14,400,000

Sales 3,624,000 40.20 145,684,800

Cost of Goods Sold 2,220,000 Schedule 1 89,044,080
Depreciation Expense 120,000 40.00 4,800,000
Other Expenses 786,000 40.20 31,597,200
Income Tax Expense 98,400 40.20 3,955,680
Retained Earnings, Jan. 2 576,000 40.00 23,040,000
Dividends Declared, Sept. 1 360,000 40.10 14,436,000
Total 8,322,000 8,322,000 334,521,360 334,257,300
Remeasurement Gain - OCI 264,060
TOTAL 8,322,000 8,322,000 334,521,360 334,521,360