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 Swiss franc is the functional currency.
\section*{Required}

a. Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.

b. Compare the results of exercise 12-5, 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 during 20X1.

Transcribed Image Text:

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