On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 71,000. 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 7,200 Credit 23,500 5,200 28,500 108,000 SFr 11,800 12,700 53,500 71,000 155,400 73,500 11,800 30,500 16,200 SFr 304,400 SFr 304,400 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,160 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: January 1 SFr 1 = $ 0.73 March 1 SFr 1 = $ 0.74 November 1 SFr 1 = $ 0.77 December 31 SFr 1 = $ 0.80 SFr 1 = $ 0.75 20X1 average 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 Sales Total Total credits SUNTIME COMPANY Trial Balance Translation Schedule December 31, 20X1 U.S. Dollars
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 71,000. 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 7,200 Credit 23,500 5,200 28,500 108,000 SFr 11,800 12,700 53,500 71,000 155,400 73,500 11,800 30,500 16,200 SFr 304,400 SFr 304,400 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,160 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: January 1 SFr 1 = $ 0.73 March 1 SFr 1 = $ 0.74 November 1 SFr 1 = $ 0.77 December 31 SFr 1 = $ 0.80 SFr 1 = $ 0.75 20X1 average 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 Sales Total Total credits SUNTIME COMPANY Trial Balance Translation Schedule December 31, 20X1 U.S. Dollars
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 22E
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Question
22.)
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) 71,000. 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 7,200
Credit
23,500
5,200
28,500
108,000
SFr 11,800
12,700
53,500
71,000
155,400
73,500
11,800
30,500
16,200
SFr 304,400
SFr 304,400
1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,160 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:
January 1
SFr 1 = $ 0.73
March 1
SFr 1 = $ 0.74
November 1
SFr 1 = $ 0.77
December 31
SFr 1 = $ 0.80
SFr 1 = $ 0.75
20X1 average
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'.
Transcribed Image Text: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
Sales
Total
Total credits
SUNTIME COMPANY
Trial Balance Translation Schedule
December 31, 20X1
U.S. Dollars
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