Par of Chicago acquired all the outstanding capital stock of Sar of London on January 1, 2011, for $1,200,000. The exchange rate for British pounds was $1.60 and Sar's stockholders' equity was £800,000, consisting of £500,000 capital stock and £300,000 retained earnings. The functional currency of Sar is the U.S. dollar.

Exchange rates for British pounds for 2011 are as follows:

Current rate December 31, 2010 ..... $1.60

Current rate December 31, 2011 .... 1.70

Average exchange rate for 2011 ..... 1.65

Exchange rate for dividends ....... 1.64

Sar's cost of goods sold consists of £200,000 inventory on hand at January 1, 2011, and purchases of £600,000 less £150,000 inventory on hand at December 31, 2011, that was acquired at an exchange rate of $1.68.

All of Sar's plant assets were on hand when Par acquired Sar, and Sar's other expenses were paid in cash or relate to accounts payable.

Sar's adjusted trial balance at December 31, 2011, in British pounds is as follows

REQUIRED: Prepare a remeasurement worksheet to restate Sar's adjusted trial balance at December 31, 2011, in U.S. dollars.

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Debits Cash 50,000 200,000 50,000 Accounts receivable Short-term note receivable Inventories 150,000 300,000 400,000 500,000 Land Buildings-net Equipment-net Cost of sales 650,000 Depreciation expense Other expenses Dividends 200,000 400,000 100,000 £ 3,000,000 Credits Accounts payable Bonds payable-10% Bond interest payable Capital stock Retained earnings £ 180,000 500,000 20,000 500,000 300,000 1,500,000 £ 3,000,000 Sales