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 January 1 March 1 November 1 December 31 20X1 average SFr 1 SFr 1 SFr 1 SFr 1 SFr 1 $ 0.73 $ 0.74 $ 0.77 $ 0.80 $ 0.75 Debit SFr 7,000 20,000 Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's 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: 6. The Swiss franc is the functional currency. 5,000 25,000 100,000 Credit SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr 282,000 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 January 1 March 1 November 1 December 31 20X1 average SFr 1 SFr 1 SFr 1 SFr 1 SFr 1 $ 0.73 $ 0.74 $ 0.77 $ 0.80 $ 0.75 Debit SFr 7,000 20,000 Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's 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: 6. The Swiss franc is the functional currency. 5,000 25,000 100,000 Credit SFr 10,000 12,000 50,000 60,000 150,000 70,000 10,000 30,000 15,000 SFr 282,000 SFr 282,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. The Swiss franc is the functional currency.
Required:
Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
Note: If no adjustment is needed, select 'No entry necessary'.
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
Common stock
SUNTIME COMPANY
Trial Balance Translation Schedule
December 31, 20X1
Sales
Total
U.S. Dollars
$
$
$
0
0
0
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
November 1
December 31
20X1 average
SFr 1 = $ 0.73
SFr 1 $ 0.74
SFr 1
$ 0.77
SFr 1
$ 0.80
SFr 1
$ 0.75
Debit
SFr 7,000
20,000
5,000
6. The Swiss franc is the functional currency.
25,000
100,000
70,000
10,000
30,000
15,000
SFr 282,000
1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's 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
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