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On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 78,000.

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 78,000. SunTimes December 31, 20X1, trial balance in SFr is as follows:

Debit Credit
Cash SFr 7,800
Accounts Receivable (net) 23,000
Receivable from Popular Creek 5,700
Inventory 28,500
Plant & Equipment 104,000
Accumulated Depreciation SFr 10,900
Accounts Payable 12,700
Bonds Payable 51,500
Common Stock 78,000
Sales 145,200
Cost of Goods Sold 71,500
Depreciation Expense 10,900
Operating Expense 30,500
Dividends Paid 16,400
Total SFr 298,300 SFr 298,300

Additional Information

  1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,560 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 years 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 $
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
  1. 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'.)

Suntime company

trial balance translation schedule

december 31, 20x1

Cash

Accounts receivable (net)

receivable from popular creek

inventory

plant and equipment

cost of goods sold

depreciation expense

operating expense

dividends paid

total

total debits

accumulated depreciation

accounts payable

bonds payable

commmon stock sales

total

total credits

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