on worksheet, parent accounting stock of Soo of London on January 1, 2011, for $800,000, uired all the outstanding capital stock of Soo of London on January uity consisted of pounds was $1.60 and Soo's stockholders equity consisted of retained earnings. Soo's functional currency is the British oo at January 1, 2011, in British pounds and U.S. dollars are P a the exchange rate for British 000 capital stock and 100,000 marized as follows: British Pounds Exchange Rate U.S. Dollars Cash Accounts receivable-net $1.60 1.60 1.60 1.60 64,000 Equipment 900,000 250,000 150,000 400,000 $1.440,000 Accumulated depreciation Accounts payable Capital stock Retained earnings $1.60 1.60 1.60 1.60 100 900,000 1,440,000 Exchange rates for 2011 are as follows Current exchange rate, January 1, 2011 Average exchange rate for 2011 Rate for cash dividends Current exchange rate, December 31.2011 $1.60 1.63 1.62 1.65 Soo's adjusted trial balance in British pounds at December 31, 2011, is as follows: ts Cash Accounts receivable--net 70,000 800,000 -350.000 80,000 100,000 30,000 1,500,000 Equipment Cost of sales Depreciation expense ses Dividends Credits Accumulated depreciation Accounts payable Capital stock Retained earnings Sales 330,000 70,000 400,000 100,000 ,000 1,500,000 1 Prepare a translation worksheet to convert Soo's December 31, 2011, adjusted trial balance into U.S 2 Prepare journal entries on Pyl's books to account for the investment in Soo for 2011. compute the translation gain or loss