On January 1 , 2 0 X 1 , Popular Creek Corporation organized SunTime Company as
Question:
On January X Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs SFr SunTimes December X trial balance in SFr is as follows:
Debit Credit
Cash SFr
Accounts Receivable net
Receivable from Popular Creek
Inventory
Plant & Equipment
Accumulated Depreciation SFr
Accounts Payable
Bonds Payable
Common Stock
Sales
Cost of Goods Sold
Depreciation Expense
Operating Expense
Dividends Paid
Total SFr SFr
Additional Information
The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $ payable to SunTime.
Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November
Equipment is depreciated by the straightline method with a year life and no residual value. A full years depreciation is taken in the year of acquisition. The equipment was acquired on March
The dividends were declared and paid on November
Exchange rates were as follows:
SFr $
January
March
November
December
X average
The Swiss franc is the functional currency.
Required:
Prepare a schedule translating the December X trial balance from Swiss
SUNTIME COMPANY
Trial Balance Translation Schedule
December X
US Dollars
Cash
Accounts receivable net
Receivable from Popular Creek
Inventory
Plant and equipment
Cost of goods sold
Depreciation expense
Operating expense
Dividends paid
Total $
No entry necessary
Total debits $
Accumulated depreciation
Accounts payable
Bonds payable
Common stock
Sales
Total $
Accumulated other comprehensive income Translation adjustment
Total credits $
Advanced Financial Accounting
ISBN: 9781260772135
13th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd