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: Credit Debit SFr 7,000 20,000 5,000 25,000 100,000 Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr282,000 SFr282,000 Additional Information 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: January 1 March 1 November 1 December 31 20x1 average SFr $ 1 = 0.73 1 = 0.74 1 = 0.77 1 = 0.80 1 = 0.75 6. The U.S. dollar is the functional currency. Required: Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. (If no adjustment is needed, select 'No entry necessary':) EA SUNTIME COMPANY Trial Balance Remeasurement Schedule December 31, 20X1 U.S. Dollars Cash $ 112,500 Accounts receivable (net) Receivables from Popular Creek Inventory Plant and equipment Cost of goods sold Depreciation expense Operating expense Dividends paid Total 112,500 $ $ 112,500 Total debits Accumulated depreciation Accounts payable Bonds payable Common stock Sales Total $ 0 Total credits 0 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: Credit Debit SFr 7,000 20,000 5,000 25,000 100,000 Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr282,000 SFr282,000 Additional Information 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: January 1 March 1 November 1 December 31 20x1 average SFr $ 1 = 0.73 1 = 0.74 1 = 0.77 1 = 0.80 1 = 0.75 6. The U.S. dollar is the functional currency. Required: Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. (If no adjustment is needed, select 'No entry necessary':) EA SUNTIME COMPANY Trial Balance Remeasurement Schedule December 31, 20X1 U.S. Dollars Cash $ 112,500 Accounts receivable (net) Receivables from Popular Creek Inventory Plant and equipment Cost of goods sold Depreciation expense Operating expense Dividends paid Total 112,500 $ $ 112,500 Total debits Accumulated depreciation Accounts payable Bonds payable Common stock Sales Total $ 0 Total credits 0
