On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investmentcost of Swiss francs (SFr) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows:CashAccounts Receivable (net)Receivable from Popular CreekInventoryPlant and EquipmentAccumulated DepreciationAccounts PayableBonds PayableCommon StockSalesCost of Goods SoldDepreciation ExpenseOperating ExpenseDividends PaidTotalAdditional InformationJanuary 1March 1SFr 1 = $ 0.80SFr 1 =$0.77SFr 1 =$ 0.74SFr 1 = $0.73SFr 1$ 0.75November 1December 3120X1 average6. The U.S. dollar is the functional currency.DebitSFr 7,00020,0005,00025,000100,000=70,00010,00030,00015,000SFr 282,0001. 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 inthe 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:CreditSFr 10,00012,00050,00060,000150,000SFr 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'.X Answer is complete but not entirely correct.SUNTIME COMPANYTrial Balance Remeasurement ScheduleDecember 31, 20X1CashAccounts receivable (net)Receivable from Popular CreekInventoryPlant and equipmentCost of goods soldDepreciation expenseOperating expenseDividends paidTotalRemeasurement lossTotal debitsAccumulated depreciationAccounts payableBonds payableCommon stockSalesTotalNo entry necessaryTotal credits$$$$$0$U.S.Dollars5,11014,6003,65018,50077,00052,500 X7,70022,500✔11,100212,66038,100 X250,7607,7008,76036,50048,000112,500213,460213,460

The translation refers to the prcedure in which the foreign subsidiary financial statements are…

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investme 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 Debit SFr 7,000 20,000 5,000 25,000 100,000 70,000 10,000 30,000 15,000 SFr 282,000 Credit SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000 1. The receivable from Popular Creek is denominated in Swiss francs. Its books show a $4,000 payable to SunTime.

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investme 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 Debit SFr 7,000 20,000 5,000 25,000 100,000 70,000 10,000 30,000 15,000 SFr 282,000 Credit SFr 10,000 12,000 50,000 60,000 150,000 SFr 282,000 1. The receivable from Popular Creek is denominated in Swiss francs. Its books show a $4,000 payable to SunTime.

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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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Padre Company Book Values 12/31 $ 115,250 240,750 440,000 680,000 Accounts 835,000 313,000 Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 (319,000) (127,000) (957,500) (660,000) 0 (70,000) (437,500) (1,015,000) 962,000 Sol Company Amounts Book Values 12/31 $ 54,400 353,000 286,000 163,000 294,000 229,000 (147,000) (30,000) (597,500) 0 (210,000) (90,000) (284,000) (399,900) 379,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires…
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Credit 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 January 1 March 11 SFr 1 $ 0.73 SFr 1$ 0.74 SFr. 1 = $0.77 SFr 1- $ 0.80 SFr 1 = $0.75 Debit SFr 8,100 21,000 6,200 27,500 107,000 72,500 11,600 31,500 15,800 SFr 301,200 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,200 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…
Solo Company Limited, located in Mexico City, is a wholly owned subsidiary of Partner Incorporated, a U.S. company. At the beginning of the year, Solo's condensed balance sheet was reported in Mexican pesos (MXP) as follows: Assets 3,425,000 January 1 (beginning of year) Average for year During the year, the company earned income of MXP260,000 and on November 1 declared dividends of MXP165,000. The Mexican peso is the functional currency. Relevant exchange rates between the peso and the U.S. dollar follow November 1 December 31 (end of year) Liabilities Stockholders' Equity $ 0.0870 0.0900 0.0915 0.0930 Required: a. Prepare a proof of the translation adjustment, assuming that the beginning credit balance of the Accumulated Other Comprehensive Income-Translation Adjustment account was $3,240 b. Did the US dollar strengthen or weaken against the Mexican peso during the year? Complete this question by entering your answers in the tabs below. Dividends Not assets translated at 2,830,000…
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