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Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 102,000 pounds. The subsidiary immediately borrowed 245,000 pounds on a five-year note with 7 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 347,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2020, the subsidiary rented the building for three years to a group of local attorneys for 9,050 pounds per month. By year-end, rent payments totaling 90,500 pounds had been received, and 18,100 pounds was in accounts receivable. On October 1, 2020, 4,500 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,475 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow:

January 1, 2e2e October 1, 2e2e December 31, 2020 Average for 2020 52.00 2.05 2.88 2.04 1 Pound 1 1 1 Prepare an Income statement statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts Into U.S. dollars. Prepare a Statement of Retained earnings. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Statement of Retained Earnings For the Year Ended December 31, 2020 Pounds U.S. Dollars Retained earnings, 1/1 Retained earnings, 12/31 0 $ 0 Complete this question by entering your answers in the tabs below. Income Statement Retained Earnings Balance Sheet Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Balance Sheet December 31, 2020 Pounds U.S. Dollars Assets: Total assets 01 S 0 liabilitar and out

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