Question

1. Certain balance sheet accounts in a foreign subsidiary of Shaw Company on December 31, 20X1, have been restated in U.S. dollars as follows: Restated at Current Rates Historical Rates Accounts Receivable, Current $ 100,000 $ 110,000 Accounts Receivable, Long-Term 50,000 55,000 Prepaid Insurance 25,000 30,000 Patents 40,000 45,000 Total $ 215,000 $ 240,000 What total should be included in Shaw's balance sheet for December 31, 20X1, for these items?

Answer 1

The total that should be included in Shaw's balance sheet for December 31, 20X1 is $215,000

Step-by-step explanation:

The amount that should be included in Shaw's balance sheet for December 20X1 would be

Particulars Stated at Current Rates

Accounts Receivable, Current $100,000

Accounts Receivable, Long-Term $50,000

Prepaid Insurance $25,000

Patents $40,000

Total $215,000