Refer to the data in Exercise E12-5, but now assume that the exchange rates were as follows:

The receivable from Popular Creek Corporation is denominated in Swiss francs. Popular Creek€™s books show a $3,650 payable to RoadTime. Assume the Swiss franc is the functional currency.
in Exercise E12-5

Required
a. Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
b. Compare the results of Exercise E12-5, in which the dollar is weakening against the Swiss franc during 20X1, with the results in this exercise (E12-9), in which the dollar is strengthening against the Swiss franc during20X1.

Transcribed Image Text:

SFr S January 1 March 1 November1 December 31 20x1 average 1-0.80 1 0.77 1 0.74 1 0.73 1 0.75 Debit Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total SFr 7,000 20,000 5,000 25,000 100,000 SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr 282.000