1. Gate Inc. had a $30,000 credit adjustment for the year ended December 31, 20X2, from restating its foreign subsidiary’s accounts from their local currency units into U. S. dollars. Additionally, Gate had a receivable from a foreign customer payable in the customer’s local currency. On December 31, 20X1, this receivable for 200,000 local currency units (LCU) was correctly included in Gate’s balance sheet at $110,000. When the receivable was collected on February 15, 20X2, the U. S. dollar equivalent was $120,000. In Gate’s 20X2 consolidated income statement, how much should be reported as foreign exchange gain in computing net income?

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)