Question
Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTimes December 31, 20X1, trial balance in SFr is
Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTimes December 31, 20X1, trial balance in SFr is as follows: Debit Credit Cash SFr 7,600 Accounts Receivable (net) 23,500 Receivable from Popular Creek 5,900 Inventory 27,500 Plant & Equipment 101,000 Accumulated Depreciation SFr 10,600 Accounts Payable 13,900 Bonds Payable 52,500 Common Stock 76,000 Sales 142,500 Cost of Goods Sold 72,500 Depreciation Expense 10,600 Operating Expense 31,500 Dividends Paid 15,400 Total SFr 295,500 SFr 295,500
Additional Information The receivable from Popular Creek is denominated in Swiss francs. Its books show a $4,307 payable to SunTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full years depreciation is taken in the year of acquisition. The equipment was acquired on March 1. The dividends were declared and paid on November 1.
Exchange rates were as follows: SFr $ January 1 1 = 0.80 March 1 1 = 0.77 November 1 1 = 0.74 December 31 1 = 0.73 20X1 average 1 = 0.75 The U.S. dollar is the functional currency.
Required: a. Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. (If no adjustment is needed, select 'No entry necessary'.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started