Refer to the data in Exercise E12-5, but now assume that the exchange rates were as follows:
SFr $
January 1........ 1 = 0.80
March 1 ........ 1 = 0.77
November 1........ 1 = 0.74
December 31.......... 1 = 0.73
20X1 average ......... 1 = 0.75
In E12-5

The receivable from Popular Creek is denominated in Swiss francs. Its books show a $3,650 payable to RoadTime. Assume that the U.S. dollar is the functional currency.

Required
a. Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars.
b. Compare the results of Exercise E12-7, in which the dollar weakens against the Swiss franc during 20X1, with the results in this exercise (E12-10), in which the dollar strengthened against the Swiss franc during20X1.

Transcribed Image Text:

Debit Credit Accounts Receivable (net) Receivable from Popular Creek 2 Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable SFr 10,000 Cost of Goods Sold Depreciation Expense Dividends Paid SFr 282,000 SFr 282,000