Jentry Ltd. is a foreign subsidiary of the Piedmont Corporation, a U.S. company. Jentry uses the euro as its currency. The following exchange rates are applicable to the period, expressed using the direct method:
| Dec. 31, Year 1: | $1.49 |
| Weighted Average: | $1.38 |
| Dec. 31, Year 2: | $1.31 |
Inventory was bought and sold evenly throughout Year 2. Marketable securities consist of common stock purchased at the beginning of Year 2. Common and preferred stock was issued at the beginning of Year 2. Beginning retained earnings were zero, and no dividends were declared or paid.
Populate the Year 2 financial statements using the table below.
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Remeasurement Method |
Translation Method |
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Balance Sheet (Dec. 31, Year 2) |
Amount in Euros |
Exchange Rate |
Dollars |
Exchange Rate |
Dollars |
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Cash | |||||
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Accounts Receivable | |||||
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Marketable Securities | |||||
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Inventory | |||||
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PP&E (Gross) | |||||
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Accumulated Depreciation | |||||
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Total Assets | |||||
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Accounts Payable | |||||
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Long-term Debt | |||||
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Common Stock | |||||
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Preferred Stock | |||||
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Retained Earnings | |||||
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Accumulated OCI | |||||
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Total Liabilities and Equity | |||||
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Income Statement (Year 2) |
Amount in Euros |
Exchange Rate |
Dollars |
Exchange Rate |
Dollars |
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Sales | |||||
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Cost of Goods Sold | |||||
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SG&A Expenses | |||||
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Depreciation Expense | |||||
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Other Expenses | |||||
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Income Tax Expense | |||||
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Total Costs/Expenses | |||||
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Currency Exchange (Gain)/Loss | |||||
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Net Income | |||||