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Current/Closing Rate Method: Adjusted Trial Balance $

This document shows an adjusted trial balance using the current/closing rate method to account for foreign exchange differences. It includes accounts in both the local currency (pesos) and a foreign currency (USD) using different exchange rates for assets/expenses and liabilities/equity. The total debits equal the total credits, with no balancing amount needed.

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Daneen Gastar
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67 views5 pages

Current/Closing Rate Method: Adjusted Trial Balance $

This document shows an adjusted trial balance using the current/closing rate method to account for foreign exchange differences. It includes accounts in both the local currency (pesos) and a foreign currency (USD) using different exchange rates for assets/expenses and liabilities/equity. The total debits equal the total credits, with no balancing amount needed.

Uploaded by

Daneen Gastar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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CURRENT/CLOSING RATE METHOD

ADJUSTED TRIAL BALANCE $


DEBIT CREDIT EXCHANGE RATE
SALES 3,020,000 A 40.20
COST OF GOODS SOLD 1,850,000 A 40.20
DEPRECIATION EXPENSE 100,000 A 40.20
OTHER EXPENSES 655,000 A 40.20
INCOME TAX EXPENSE 82,000 A 40.20
RETAINED EARNINGS 480,000 H 40.00
DIVIDENDS DECLARED 300,000 H 40.10

CASH 930,000 C 40.25


A/R, NET 608,000 C 40.25
INVENTORY 830,000 C 40.25
LAND(NET) 500,000 C 40.25
BUILDINGS(NET) 650,000 C 40.25
EQUIPMENT (NET) 430,000 C 40.25

ACCOUNTS PAYABLE 640,000 C 40.25


SHORT TERM N/P 635,000 C 40.25
BONDS PAYABLE 900,000 C 40.25

COMMON STOCK 960,000 H 40.00


PAID-IN CAPITAL IN EXCESS OF PAR 300,000 H 40.00

TOTAL 6,935,000 6,935,000


FCTRG(BALANCING FIGURE)
FINAL TOTAL
RATE METHOD
ADJUSTED TRIAL BALANCE (PESOS) PESOS
DEBIT CREDIT NET INCOME 333,000 13,386,600
121,404,000 R/E-1/2 480,000 19,200,000
74,370,000 DIVIDENDS DECLARED 300,000 12,030,000
4,020,000 R/E-12/31 513,000 20,556,600
26,331,000
3,296,400
19,200,000
12,030,000
TOTAL ASSETS 158,907,000
37,432,500 LIABILITIES& SHE(w/out FCTRG) 158,500,350
24,472,000 FCTRG (BALANCING FIGURE) 406,650
33,407,500
20,125,000
26,162,500
17,307,500

25,760,000
25,558,750
36,225,000

38,400,000
12,000,000

278,954,400 278,547,750
406,650
278,954,400 278,954,400
TEMPORAL METHOD
ADJUSTED TRIAL BALANCE $
DEBIT CREDIT EXCHANGE RATE
SALES 3,020,000 A 40.20
PURCHASES 1,920,000 A 40.20

DEPRECIATION EXPENSE 100,000 H 40.00


OTHER EXPENSES 655,000 A 40.20
INCOME TAX EXPENSE 82,000 A 40.20
RETAINED EARNINGS-1/1 480,000 H 40.00
DIVIDENDS DECLARED-9/1 300,000 40.10

CASH 930,000 40.25


A/R, NET 608,000 40.25
INVENTORY-1/1 (ASSUMED) 760,000 40.00
LAND(NET) 500,000 40.00
BUILDINGS(NET) 650,000 40.00
EQUIPMENT (NET) 430,000 40.00

ACCOUNTS PAYABLE 640,000 40.25


SHORT TERM N/P 635,000 40.25
BONDS PAYABLE 900,000 40.25

COMMON STOCK 960,000 40.00


PAID-IN CAPITAL IN EXCESS OF PAR 300,000 40.00

TOTAL
FCTR LOSS (BALANCING FIGURE)
FINAL TOTAL
METHOD
ADJUSTED TRIAL BALANCE (PESOS)
DEBIT CREDIT
121,404,000
77,184,000
-
4,000,000
26,331,000
3,296,400
- 19,200,000
12,030,000
-
37,432,500
24,472,000
30,400,000
20,000,000
26,000,000
17,200,000

25,760,000
25,558,750
36,225,000

38,400,000
12,000,000

278,345,900 278,547,750
201,850
278,547,750 278,547,750

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