6) Note to Instructor: This exam item is a continuation of Exercise 5 and proceeds forward with Stripe's second year of operations.
Stripe Corporation, a British subsidiary of Polka Corporation (a U.S. company) was formed by Polka on January 1, 2011 in exchange for all of the subsidiary's common stock. Stripe has now ended its second year of operations on December 31, 2012. Relevant exchange rates are:
January 01, 2011 = 1£ = $1.60
April 01, 2011 = 1£ = $1.62
December 31, 2012 = 1£ = $1.57
2012 average rate = 1£ = $1.56
Stripe's adjusted trial balance is presented below for the calendar year 2012.
Required: Prepare Stripe's:
1. Remeasurement working papers;
2. Remeasured income statement; and
3. Remeasured balance sheet.