Pyl acquired all the outstanding capital stock of Soo of London on January 1, 2011, for $800,000, when the exchange rate for British pounds was $1.60 and Soo's stockholders' equity consisted of £400,000 capital stock and £100,000 retained earnings. Soo's functional currency is the British pound. Balance sheet accounts for Sooth at January 1, 2011, in British pounds and U.S. dollars are summarized as follows:

Exchange rates for 2011 are as follows:Current exchange rate January 1, 2011 ..... $1.60Average exchange rate for 2011 .......... 1.63Rate for cash dividends ........... 1.62Current exchange rate December 31, 2011 .... 1.65Soo's adjusted trial balance in British pounds at December 31, 2011, is as follows:DebitsCash .............. £ 20,000Accounts receivable'net ........ 70,000Inventories ............. 50,000Equipment ............ 800,000Cost of sales ............ 350,000Depreciation expense ......... 80,000Operating expenses .......... 100,000Dividends .............. 30,000£1,500,000CreditsAccumulated depreciation .. £ 330,000Accounts payable ......... 70,000Capital stock ........ 400,000Retained earnings ...... 100,000Sales ........... 600,000£1,500,000REQUIRED1. Prepare a translation worksheet to convert Soo's December 31, 2011, adjusted trial balance into U.S. dollars.2. Prepare journal entries on Pyl's books to account for the investment in Soo for 2011.

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British Exchange Rate U.S. Pounds Dollars £ 50,000 60,000 $ 80,000 96,000 64,000 $1.60 1.60 Cash Accounts receivable-net Inventories Equipment 40,000 750,000 £900,000 1.60 1.60 1,200,000 $1,440,000 $ 400,000 240,000 640,000 160,000 $1.60 Accumulated depreciation Accounts payable Capital stock Retained earnings £250,000 150,000 400,000 1.60 1.60 100,000 £900,000 1.60 $1.440,000