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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) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information January 1 March 1 SFr 1 SFr 1 SFr 1 SFr 1 SFr 1 $ 0.80 $ 0.77 $ 0.74 $ 0.73 $ 0.75 Debit SFr 7,000 20,000 5,000 25,000 100,000 November 1 December 31 20X1 average 6. The U.S. dollar is the functional currency. 70,000 10,000 30,000 15,000 SFr 282,000 1. The receivable from Popular Creek is denominated in Swiss francs. Its 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: Credit SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information January 1 March 1 SFr 1 SFr 1 SFr 1 SFr 1 SFr 1 $ 0.80 $ 0.77 $ 0.74 $ 0.73 $ 0.75 Debit SFr 7,000 20,000 5,000 25,000 100,000 November 1 December 31 20X1 average 6. The U.S. dollar is the functional currency. 70,000 10,000 30,000 15,000 SFr 282,000 1. The receivable from Popular Creek is denominated in Swiss francs. Its 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: Credit SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information January 1 March 1 SFr 1 = $0.80 SFr 1 = $0.77 SFr 1 $ 0.74 SFr 1 = $ 0.73 SFr 1 = $ 0.75 Debit SFr 7,000 20,000 5,000 25,000 100,000 November 1 December 31 20X1 average 6. The U.S. dollar is the functional currency. 70,000 10,000 30,000 15,000 SFr 282,000 Credit 1. The receivable from Popular Creek is denominated in Swiss francs. Its 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: SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000
Transcribed Image Text: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: Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information January 1 March 1 SFr 1 = $0.80 SFr 1 = $0.77 SFr 1 $ 0.74 SFr 1 = $ 0.73 SFr 1 = $ 0.75 Debit SFr 7,000 20,000 5,000 25,000 100,000 November 1 December 31 20X1 average 6. The U.S. dollar is the functional currency. 70,000 10,000 30,000 15,000 SFr 282,000 Credit 1. The receivable from Popular Creek is denominated in Swiss francs. Its 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: SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000
Required: a. Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. Note: If no adjustment is needed, select 'No entry necessary'. > Answer is complete but not entirely correct. SUNTIME COMPANY Trial Balance Remeasurement 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 Remeasurement loss Total debits Accumulated depreciation Accounts payable Bonds payable Common stock Sales Total No entry necessary Total credits $ $ $ 22,500 11,100 $ 212,660 38,100 250,760 $ 0 U.S. Dollars $ 5,110 14,600 3,650 18,500 77,000 52,500 X 7,700 7,700 8,760 36,500 48,000 112,500 213,460 213,460
Transcribed Image Text:Required: a. Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars. Note: If no adjustment is needed, select 'No entry necessary'. > Answer is complete but not entirely correct. SUNTIME COMPANY Trial Balance Remeasurement 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 Remeasurement loss Total debits Accumulated depreciation Accounts payable Bonds payable Common stock Sales Total No entry necessary Total credits $ $ $ 22,500 11,100 $ 212,660 38,100 250,760 $ 0 U.S. Dollars $ 5,110 14,600 3,650 18,500 77,000 52,500 X 7,700 7,700 8,760 36,500 48,000 112,500 213,460 213,460
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