Sar Company [1]

Translation Worksheet
at and for the year ended Dec 31, 2016

Translation
Sheqels Rate
Debits
Cash 40,000 0.3
Trade receivables 50,000 0.3
Inventories 150,000 0.3
Land 160,000 0.3
Equipment — net 300,000 0.3
Buildings — net 500,000 0.3
Expenses 400,000 0.32
Exchange loss (advance)* 20,000 0.32
Dividends 100,000 0.33
Equity adjustment
TOTAL 1,720,000

Credits
Accounts payable 120,000 0.3
Other liabilities 60,000 0.3
Advance from Pel 140,000 0.3
Common stock 500,000 0.35
Retained earnings January 1 300,000 0.35
Sales 600,000 0.32
TOTAL 1,720,000

Adjustment in Star Book

Jan 2nd, 2016 (rate = $0,35) 42000/0,35 120,000
Cash 120,000
Advanced from pel 120,000
Dec 31st, 2016 (rate = $0,30) 42000/0,3 140,000
Exchange Loss 20,000
Advanced from Pel 20,000
To adjust payable denominated in dollar
[42000/$0,30 - 120000]

[2]
Jan 1, 2016
Investment in Sar 308,000
Cash 308,000
Jan 2, 2016
Advance to Sar 42,000
Cash 42,000
June 1, 2016
Cash 33,000
Investment in Sar 33,000
Translated Income Statement
Sales 192,000
Expenses - 128,000
Exchange Loss - 6,400
Net Income 57,600
Dec 31st, 2016
Investment in Sar 17,000
Equity Adjustment from Trans 40,600
Income from Sar 57,600

Patent
Sar's Equity (in Sheqel)
Capital Stock 500,000
Retained Earning 300,000
Total Net Asset (in sheqel) 800,000
Total Net Asset (in dollar) 280,000

Paid for investment in Sar (in dollar) 308,000

Excess (in dollar) 28,000 PATENT
Excess (in sheqel) 80,000 PATENT
Sheqel
Patent 80,000 0.35
Amortization Expenses 8,000 0.32
Patent (ending) 72,000 0.3
Dec 31st, 2016
Income from Sar 2,560
OCI, equity adjustment from translation 3,840
Investment in star 6,400

Independent proofing of Equity = 40,600

Exchange rate
Sheqel difference
Net Asset 800,000 -0.05
Net Income 180,000 -0.02
(57600/0,32)
Less: Dividends - 100,000 -0.03

Net investment balance in Sar

Investment cost Jan 2016 308,000
Less: Dividend Received - 33,000
Add: Equity in Sar income 57,600
Less: Equity Adjustment of unrealized loss (OCI) - 40,600
Less: Unrealized loss on patents - 3,840
Less: Patent amortization - 2,560
Net investment Dec 2016 285,600

Net investment balance in Sar

(by General ledger) 308,000
- 33,000
17,000
- 6,400
285,600
Translated Income Statement and Retained Earning
at and for the year ended Dec 31, 2016
Sales 192,000
Expenses - 128,000
Exchange Loss - 6,400
Net Income 57,600
Retained Earning Jan 1, 2016 105,000
Less: Dividends - 33,000
Retained Earning Dec 31, 2016 129,600

Translated Balance Sheet

at and for the year ended Dec 31, 2016
Cash 12,000
Trade receivables 15,000
Inventories 45,000
Land 48,000
Equipment — net 90,000
Buildings — net 150,000
TOTAL ASSETS 360,000

Accounts payable 36,000

Other liabilities 18,000
Advance from Pel 42,000
Common stock 175,000
Retained earnings, Dec 31, 2016 129,600
Accumulated OCI - 40,600
TOTAL LIABILITIES 360,000
U.S. $

12,000
15,000
45,000
48,000
90,000
150,000
128,000
6,400
33,000
40,600
568,000

36,000
18,000
42,000
175,000
105,000
192,000
568,000

Adjust for 20,000

Dollar
28,000
2,560 25,440
21,600 3,840

- 40,000
- 3,600

3,000
- 40,600
 Investment in Subsidiary
D C
525000 42600
93200 24000
618200 66600
551600 Balance

Investment in Subsidiary
D C
525000 42600
87600
612600 42600
570000 Balance

Net investment balance

Investment Cost Dec 2016 525000
Less: Dividend -42600
Add: Equity in Star's income 102600
Less: Amortization Expenses -15000
Investment balance December 2016 570000