Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 37

Livingston Company is a wholly owned subsidiary of Rose Corporation.Livingston operates in a foreign country with financial statements recorded in goghs (GH), the company's functional currency.Financial statements for the year of 2011 are as follows:
Additional Information
• The common stock was issued in 2004 when the exchange rate was $1.00 = 0.48 GH; fixed assets were acquired in 2005 when the rate was $1.00 = 0.50 GH.
• As of January 1, 2011, the Retained Earnings balance was translated as $395,000.
• The currency exchange rates for $1 for the current year follow:
• Inventory was acquired evenly throughout the year.
• The December 31, 2010, balance sheet reported a translation adjustment with a $85,000 debit balance.
• Dividends were paid on April 1, 2011, and a piece of equipment was sold on September 1, 2011.
Translate the foreign currency statements into the parent's reporting currency, the U.S.dollar.