1 Initial investment into SunTime Company occurred on January 1 in the amount of 60,000 Swiss francs.

2 The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to SunTime.

3 Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1.

4 Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year's depreciation is taken in the year of acquisition. The equipment was acquired on March 1.

5 The dividends were declared and paid on November 1. 6 The Swiss franc is the functional currency.

US Dollars Account Cash Accounts Receivable, net Receivable from Popular Creek Inventory Plant and Equipment Cost of Goods Sold Depreciation Expense Other Expenses Dividends Total Debits Swiss Francs 7,000 20,000 5,000 25,000 100,000 70,000 Rate 0.80 0.80 0.80 0.77 0.74 0.77 0.77! 0.75 Exchange Rates January 1 0.73 March 1 0.74 November 1 0.77 December 31 0.80 Average 0.75 January 1 March 1 November 1 December 31 20X1 average SFr 5 1 = 0.80 1 = 0.77 1 = 0.74 1 = 0.73 1 = 0.75 000 00 15,000 282,000 0.74 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Total Accumulated OCI - Translation Adjustment Total Credits 10,000 12,000 50,000 60,000 150,000 282,000 Rate US Dollars 0.73 0.74 Swiss Franc 7,000 20,000 5,000 25,000 100,000 70,000 10,000 30,000 15,000 282,000 Exchange Rates January 1 March 1 November 1 December 31 Average Account Cash Accounts Receivable, net Receivable from Popular Creek Inventory Plant and Equipment Cost of Goods Sold Depreciation Expense Other Expenses Dividends Total Remeasurement Loss/ gain) Total Debits 0.77 0.80 0.75 USD Accumulated Depreciation Accounts Payable Bonds Payable 10,000 12,000 50,000 (a) Worksheet for COGS: Account Swiss Francs Rate Beginning Inventory + Purchases Goods Avail -Less Ending Inventory Common Stock Sales Total Credits 60,000 150,000 282,000 COGS