On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. SunTime's December 31, 20 X1, trial balance in SFr is as follows: Debit Credit Cash SFr 8, 300 Accounts Receivable (net) 21,000 Receivable from Popular Creek 6,400 Inventory 30, 000 Plant & Equipment 106, 000 Accumulated Depreciation SFr 10, 400 Accounts Payable 13,700 Bonds Payable 54,000 Common Stock 62, 000 Sales 161, 800 Cost of Goods Sold 71, 500 Depreciation Expense 10, 400 Operating Expense 32,500 Dividends Paid 15,800 Total SFr 301, 900 SFr 301, 900 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5, 120 payable to SunTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 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. Exchange rates were as follows: SFr $ January 11 = 0.73 March 11 = 0.74 November 11 = 0.77 December 311 = 0.80 20X1 average 1 = 0.75 The Swiss franc is the functional currency.
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. SunTime's December 31, 20 X1, trial balance in SFr is as follows: Debit Credit Cash SFr 8, 300 Accounts Receivable (net) 21,000 Receivable from Popular Creek 6,400 Inventory 30, 000 Plant & Equipment 106, 000 Accumulated Depreciation SFr 10, 400 Accounts Payable 13,700 Bonds Payable 54,000 Common Stock 62, 000 Sales 161, 800 Cost of Goods Sold 71, 500 Depreciation Expense 10, 400 Operating Expense 32,500 Dividends Paid 15,800 Total SFr 301, 900 SFr 301, 900 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5, 120 payable to SunTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 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. Exchange rates were as follows: SFr $ January 11 = 0.73 March 11 = 0.74 November 11 = 0.77 December 311 = 0.80 20X1 average 1 = 0.75 The Swiss franc is the functional currency.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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) 62,000. SunTime's December 31, 20
X1, trial balance in SFr is as follows: Debit Credit Cash SFr 8, 300 Accounts Receivable (net) 21,000 Receivable from Popular Creek 6,400 Inventory 30, 000 Plant & Equipment 106, 000 Accumulated
Depreciation SFr 10, 400 Accounts Payable 13, 700 Bonds Payable 54,000 Common Stock 62, 000 Sales 161, 800 Cost of Goods Sold 71, 500 Depreciation Expense 10,400 Operating Expense 32, 500
Dividends Paid 15,800 Total SFr 301, 900 SFr 301, 900 Additional Information The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5, 120 payable to
SunTime. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 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.
Exchange rates were as follows: SFr $ January 11 = 0.73 March 11 = 0.74 November 11 = 0.77 December 31 1 = 0.80 20X1 average 1 = 0.75 The Swiss franc is the functional currency.
Required: Prepare a schedule translating the December 31, 20X1, trial balance from Swiss SUNTIME COMPANY Trial Balance Translation Schedule December 31, 20X1 U.S. Dollars Cash Accounts
receivable (net) Receivable from Popular Creek Inventory Plant and equipment Cost of goods sold Depreciation expense Operating expense Dividends paid Total $0 No entry necessary 0 Total
debits $0 Accumulated depreciation Accounts payable Bonds payable Common stock Sales Total $0 Accumulated other comprehensive income - Translation adjustment Total credits $0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education