The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that has been determined as having the Israeli shekel (ILS) as its functional currency. On October 1, 2014, the Israeli subsidiary borrowed 500,000 Swiss francs (CHF) from a bank in Geneva for two years at an interest rate of 5 percent per year. The note payable and accrued interest are payable at the date of maturity. On December 31, 2015, the Israeli subsidiary has the following foreign currency balances on its books:

Interest expense	CHF	25,000
Interest payable	CHF	31,250
Note payable	CHF	500,000

Relevant exchange rates between the Israeli shekel (ILS) and Swiss franc (CHF), and between the U.S. dollar (USD) and Israeli shekel (ILS) follow:

ILS per CHF

USD per ILS

October 1, 2014

3.86

0.30

January 1, 2015

3.91

0.29

Average for 2015

3.95

0.27

December 31, 2015

4.02

0.25

Determine the Israeli shekel amounts at which the Swiss franc balances should be reported on the Israel subsidiarys December 31, 2015, trial balance.

December 31, 2015	CHF		Exchange Rate		ILS*
Interest expense	25,000	x		=
Interest payable	31,250	x		=
Note payable	500,000	x		=

b. Determine the U.S. dollar amounts at which the Swiss franc balances should be included in IOPs 2015 consolidated financial statements

December 31, 2015	CHF		Exchange Rate		ILS*
Interest expense	98,750	x		=
Interest payable	125,625	x		=
Note payable	2,010,000	x		=