Question
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 64,000.
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 64,000. SunTimes December 31, 20X1, trial balance in SFr is as follows: Debit Credit Cash SFr 7,600 Accounts Receivable (net) 21,000 Receivable from Popular Creek 6,300 Inventory 28,500 Plant & Equipment 110,000 Accumulated Depreciation SFr 10,700 Accounts Payable 13,700 Bonds Payable 53,500 Common Stock 64,000 Sales 162,300 Cost of Goods Sold 71,000 Depreciation Expense 10,700 Operating Expense 33,500 Dividends Paid 15,600 Total SFr 304,200 SFr 304,200 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,040 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 = 0.73 March 1 1 = 0.74 November 1 1 = 0.77 December 31 1 = 0.80 20X1 average 1 = 0.75 The Swiss franc is the functional currency. Required: Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars. (If no adjustment is needed, select 'No entry necessary'.)
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