Problem 1.

Debit Credit FX Rate Debit

Cash....................................... 58,400 0.75 43,800.00
Marketable securities...................... 32,500 0.75 24,375.00
Accounts receivable (net).................. 51,370 0.75 38,527.50
Inventories................................ 108,000 0.75 81,000.00
Surrender value of life insurance.......... 7,200 0.75 5,400.00
Intangible assets.......................... 123,900 0.75 92,925.00
Property, plant, and equipment............. 636,000 0.75 477,000.00
Accumulated depreciation................... 93,850 0.75
Accounts payable........................... 74,000 0.75
Accrued interest payable................... 7,120 0.75
Notes payable.............................. 52,000 0.75
Bonds payable.............................. 80,000 0.75
Capital stock.............................. 83,000 A
Paid-in capital in excess of par........... 190,300 B
Retained earnings.......................... 390,400 C
Sales...................................... 936,300 0.7
Cost of goods sold......................... 762,000 0.7 533,400.00
Interest expense........................... 7,120 0.7 4,984.00
Depreciation expense....................... 39,350 0.7 27,545.00
Amortization expense--intangibles.......... 3,100 0.7 2,170.00
Other expenses............................. 84,230 0.7 58,961.00
Gain on sale of equipment.................. 2,400 0.7
Interest income............................ 3,800 0.7
Cumulative Translation Adjustment

1,913,170 1,913,170 1,390,087.50

Schedule A: Capital Stock

Date FC Rate In PHp
1/1/x3 40,000 0.3 12,000
6/30/x5 40,000 0.45 18,000
1/1/x6 10,000 0.5 5,000
9/1/x6 (7,000) 0.3 (2,100)
Total 83,000 32,900

Schedule B: APIC
Date FC Rate In PHp
1/1/x3 80,000 0.3 24,000
6/30/x5 104,300 0.45 46,935
1/1/x6 20,000 0.5 10,000
9/1/x6 (14,000) 0.3 (4,200)
Total 190,300 76,735

Schedule C: Retained Earnings, excluding NI

Date FC Rate In PHp
Beginning 418,400 - 179,460
Dividends
1st quarter (7,000) 0.63 (4,410)
2nd quarter (7,000) 0.66 (4,620)
3rd quarter (7,000) 0.7 (4,900)
4th quarter (7,000) 0.75 (5,250)
Total 390,400 160,280 192,970.00

Problem 2. FC Amount Price Index As Restated FX Rate

Cash 46,000 NA 46,000 0.50
Accounts Receivable 74,000 NA 74,000 0.50
Inventory 40,000 140/125 44,800 0.50
Building 100,000 140/100 140,000 0.50
Accumulated Depreciation (20,000) 140/100 (28,000) 0.50
Total Assets 240,000 276,800 0.50

Liabilities and Equity

Loans Payable 30,000 NA 30,000 0.50
Share Capital 100,000 140/100 140,000 0.50
Retained Earnings 110,000 Squeeze 106,800
Total Liabilities and Equity 240,000 276,800

Sales 120,000 140/125 134,400 0.50

Inventory, Jan.1 60,000 140/110 76,364
Purchases 30,000 140/125 33,600
Total Goods Available for sale 90,000 109,964
Inventory, Dec. 31 (40,000) 140/125 (44,800)
Cost of Sales 50,000 65,164 0.50
Gross Profit 70,000 69,236 0.50
Depreciation (10,000) 140/100 (14,000) 0.50
Other Operating Expenses (40,000) 140/125 (44,800) 0.50
Profit before loss on translation 20,000 10,436 0.50
Loss on translation - cannot be determined from the given since RE beg, as translated is not given.

Problem 3.
Amounts In FC FX Rates As Translated
Sales 2,600,000 6.45
Purchases 1,400,000 6.45 9,030,000.00
Depreciation Expense 90,000 See formula 421,800.00
Other Expenses 350,000 6.45 2,257,500.00
Cash 1,430,000 6.75 9,652,500.00
Prepayments 58,000 6.45 374,100.00
Accounts Receivable 2,550,000 6.75 17,212,500.00
Merchadise Inventory 950,000 6.15 5,842,500.00
Equipment 500,000 4.98 2,490,000.00
Machinery 400,000 4.32 1,728,000.00
Land 1,200,000 5.60 6,720,000.00
Accumulated Depreciation - Equipment 200,000 4.98
Accumulated Depreciation - Machinery 200,000 4.32
Accounts Payable 300,000 6.75
Notes Payable 250,000 6.75
Bonds Payable 1,500,000 6.75
Ordinary Share, par FC10 2,150,000 5.60
Share Premium 1,612,500 5.60
Dividends 322,500 See formula 2,055,937.50
Retained Earnings 438,000 given
9,250,500 9,250,500 57,784,837.50
Loss - which is part of Profit or loss 1,409,762.50
Php
1/1/2009 4.32 RE
1/1/2010 4.98 Retained Earnings, beg.
1/1/2012 5.60 Net Income
1/1/2014 6.15 Sales 16,770,000.00
7/1/2014 6.45 COGS ###
Dep Ex (421,800.00)
Other Expenses (2,257,500.00)
Translation Loss (1,409,762.50)
Net Income
Dividends
RE, end
Credit

70,387.50
55,500.00
5,340.00
39,000.00
60,000.00
32,900.00
76,735.00
160,280.00
655,410.00

1,680.00
2,660.00
230,195.00 -

1,390,087.50

EPR:
Balancing Figure

As Translated
23,000.00
37,000.00
 22,400.00
70,000.00
(14,000.00)
138,400.00

15,000.00
70,000.00
53,400.00
138,400.00

67,200

32,582
34,618
(7,000)
(22,400)
5,218

As Translated
16,770,000.00

996,000.00
864,000.00
2,025,000.00
1,687,500.00
10,125,000.00
12,040,000.00
9,030,000.00

5,657,100.00
59,194,600.00

5,657,100.00

2,493,200
 1,083,437.50
(2,055,937.50)
4,684,600.00
EPR:
alancing Figure
 -100000
9000
9000
9000
9000
9000
9000
9000
9000
9000
9000
9000
9000
###
0.14452148