Refer to the data in exercise \(12-5\), 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 payable to RoadTime at \(\$ 3,650\).
Assume the U.S. dollar is the functional currency.
\section*{Required}

a. Prepare a schedule remeasuring the December \(31,20 \times 1\), trial balance from Swiss francs to dollars.

b. Compare the results of exercise 12-7 in which the dollar weakens against the Swiss franc during 20X1 with the results in this exercise (E12-10) in which the dollar strengthened against the Swiss franc during \(20 \mathrm{X1}\).

Transcribed Image Text:

January 1 March 1 SFrl = $.80 SFr1 = .77 November 1 December 31 20X1 Average SFr1 = .74 SFr=.73 SFr1 = .75