Check my work 1 25 po OJ 00:44 On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SF) 60,000 SunTime's December 31, 20X1. trial balance in SFt is as follows: Debit Credit Cash 5F 7,000 Accounts Receivable (net) 20,000 Receivable from Popular Creek 5,000 Inventory 25,000 Plant & Equipment 100,000 Accumulated Depreciation SFr 10,000 Accounts Payable 12,000 Bonds Payable 50,000 Common Stock 60.ee Sales 150,ood Cost of Goods Sold 7e,eee Depreciation Expense 10,000 Operating Expense 30,000 Dividends Paid 15,eae Total SFP282.ee SFr282,00 book Paint Weferences Additional Information 1 The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to SunTime 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1 1 Check my work Additional Information 25 polits 1. The receivable from Popular Creek is denominated in Swiss francs Popular Creek's books show a $4.000 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year Items in the ending inventory were purchased November 1 3. 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 4. The dividends were declared and paid on November 1 5 Exchange rates were as follows: 8. 2017 wo January 1 March 1 November 1 December 31 20x3 average SFS 18.73 12.74 1 +0.77 10.se 1=0.75 Polence 6. The Swiss franc is the functional currency Required: a Prepare a proof of the translation adjustment POPULAR CREEK CORPORATION AND SUBSIDIARY 1 Required: a. Prepare a proof of the translation adjustment. 25 points POPULAR CREEK CORPORATION AND SUBSIDIARY Proof of Translation Adjustment Year Ended December 31, 20X1 8 03:07:51 U.S Dollars eBook Print References Net assets at beginning of year Adjustment for changes in net asset position during year. Net income for year Dividends paid Net assets translated at: Rates during year Rates at end of year Change in other comprehensive income translation adjustment during year net increase Accumulated other comprehensive income translation adjustment January 1 Change in other comprehensive income translation adjustment December 31 0 0