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) 69,000.
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 69,000. SunTimes December 31, 20X1, trial balance in SFr is as follows: Debit Credit Cash SFr 7,500 Accounts Receivable (net) 24,000 Receivable from Popular Creek 6,300 Inventory 29,500 Plant & Equipment 104,000 Accumulated Depreciation SFr 11,700 Accounts Payable 13,400 Bonds Payable 55,000 Common Stock 69,000 Sales 156,400 Cost of Goods Sold 72,500 Depreciation Expense 11,700 Operating Expense 32,000 Dividends Paid 18,000 Total SFr 305,500 SFr 305,500 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Its books show a $4,599 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'.)
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