Exercise 12-6 (Static) Proof of Translation Adjustment LO 12-4, 12-5 On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information January 1 March 1 November 1 December 31 20X1 average SFr 1 $ 0.73 SFr 1 = $ 0.74 $ 0.77 $0.80 $ 0.75 Debit SFr 7,000 20,000 5,000 25,000 100,000 SFr 1 SFr 1 SFr 1 70,000 10,000 30,000 15,000 SFr 282,000 Credit 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: SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000 6. The Swiss franc is the functional currency. Required: a. Prepare a proof of the translation adjustment. b. Where is the translation adjustment reported on Popular Creek's consolidated financial statements and its foreign subsidiary? Complete this question by entering your answers in the tabs below.

Exercise 12.6 (Stotic) Proof of Translation Adjustment LO 12-4, 12.5 On January 1,20x1. Popular Creek Corporation organized SunTime Company as a subsidiary in Swizerland with an initial imvestment cost of Swiss francs (SFi) 60,000 . SunTime's Decernber 3t, 201, trial balance in SFr is as follows: Additional Information 1. The recelvable 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 6. The Swiss franc is the functional currency Required: a. Prepare a proof of the translation adjustment b. Where is the translation adjustment reported on Popular Creek's consolidated financial statements and its foreign subsidlary? Complete this question by entering your answers in the tabs below. Where is the translation adjustment reported on Popular Creek's consolidated financial staten Note: Select all that apply. Dranara a nroof of the translation adiustment. Exercise 12.6 (Stotic) Proof of Translation Adjustment LO 12-4, 12.5 On January 1,20x1. Popular Creek Corporation organized SunTime Company as a subsidiary in Swizerland with an initial imvestment cost of Swiss francs (SFi) 60,000 . SunTime's Decernber 3t, 201, trial balance in SFr is as follows: Additional Information 1. The recelvable 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 6. The Swiss franc is the functional currency Required: a. Prepare a proof of the translation adjustment b. Where is the translation adjustment reported on Popular Creek's consolidated financial statements and its foreign subsidlary? Complete this question by entering your answers in the tabs below. Where is the translation adjustment reported on Popular Creek's consolidated financial staten Note: Select all that apply. Dranara a nroof of the translation adiustment