D E F G H K M N P 0 R S Initial investment into SunTime Company occurred on January 1 in the amount of 60,000 Swis francs. 2 The recewable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a S4,000 payable to SunTime. 3 Purchases of inventory foods are made evenly during the year. Items in the ending inventory were purchased November 1 Agenti depreciated by the line method with a 10 year Me 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 B D E F G Sun Time Company Trial Balance at December 31 Directions: Translate the December 31 trial balance from Swiss francs to USD. Rate US Dollars Swiss Francs 7,000 20,000 5,000 25,000 100,000 70,000 10,000 30,000 15,000 282,000 Exchange Rates January 1 0.73 March 1 0.74 November 1 0.77 December 31 0.80 Average 0.75 Account 5 Cash 6 Accounts Receivable, net 7 Receivable from Popular Creek 8 Inventory 9 Plant and Equipment 10 Cost of Goods Sold 11 Depreciation Expense 12 Other Expenses 13 Dividends 14 Total Debits 15 16 17 18 Accumulated Depreciation 19 Accounts Payable 20 Bonds Payable 21 Common Stock 22 Sales 23 Total Accumulated OCI - Translation 24 Adjustment 25 Total Credits 26 22 10,000 12,000 50,000 60,000 150,000 282,000 Rate US Dollars 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 0.73 0.74 0.77 0.80 0.75 5 Account 6 Cash 7 Accounts Receivable, net 8 Receivable from Popular Creek 9 Inventory 10 Plant and Equipment 11 Cost of Goods Sold 12 Depreciation Expense 11 Other Expenses 14 Dividends 15 Total 16 Remeasurement loss/gain) 17 Total Debits 16 13 (0) USD 20 Accumulated Depreciation 21 Accounts Payable 22 Bonds Payable 10,000 12,000 50,000 () Worksheet for COGS: Account Swiss Francs Rate Beginning Inventory Purchases Goods Avail Less Ending Inventory COGS 2 Common Stock 24 Sales 25 Total Credits 20 60,000 150,000 282,000