F) On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows: Debit Credit 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 7,000 20,000 5,000 25,000 100,000 SFr SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 Tota SFr 282,000 SFr 282,000 Additional Information i. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to RoadTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. ii. iii. 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. The dividends were declared and paid on November 1. iv. V. The Swiss franc is the functional currency. vi. Exchange rates were as follows: SFr 1 = 0.73 1 = 0.74 1 = 0.77 1 = 0.80 1 = 0.75 January 1 March 1 November 1 December 31 20X1 average Required: Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
F) On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows: Debit Credit 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 7,000 20,000 5,000 25,000 100,000 SFr SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 Tota SFr 282,000 SFr 282,000 Additional Information i. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 payable to RoadTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. ii. iii. 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. The dividends were declared and paid on November 1. iv. V. The Swiss franc is the functional currency. vi. Exchange rates were as follows: SFr 1 = 0.73 1 = 0.74 1 = 0.77 1 = 0.80 1 = 0.75 January 1 March 1 November 1 December 31 20X1 average Required: Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:F) On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in
Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTime's December 31,
20X1, trial balance in SFr is as follows:
Debit
Credit
Cash
Accounts Receivable (net)
Receivable from Popular Creek
Inventory
Plant & Equipment
Accumulated Depreciation
Accounts Payable
Bonds Payable
Common Stock
SFr
7,000
20,000
5,000
25,000
100,000
SFr 10,000
12,000
50,000
60,000
150,000
Sales
Cost of Goods Sold
Depreciation Expense
Operating Expense
Dividends Paid
70,000
10,000
30,000
15,000
Tota
SFr 282,000
SFr 282,000
Additional Information
i.
The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's
books show a $4,000 payable to RoadTime.
Purchases of inventory goods are made evenly during the year. Items in the ending
inventory were purchased November 1.
ii.
iii.
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.
The dividends were declared and paid on November 1.
iv.
V.
The Swiss franc is the functional currency.
vi.
Exchange rates were as follows:
SFr
1 = 0.73
1 = 0.74
1 = 0.77
1 = 0.80
January 1
March 1
November 1
December 31
20X1 average
1 = 0.75
Required:
Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
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