On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Credit Debit
Cash SFr 7,000
Accounts Receivable (net) 20,000
Receivable from Popular Creek 5,000
Inventory 25,000
Plant & Equipment 100,000
Accumulated Depreciation SFr 10,000
Accounts Payable 12,000
Bonds Payable 50,000
Common Stock 60,000
Sales 150,000
Cost of Goods Sold 70,000
Depreciation Expense 10,000
Operating Expense 30,000
Dividends Paid 15,000
Total SFr 282,000 SFr 282,000
Additional Information
1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,000 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:
SFr $
January 1 1 = 0.73
March 1 1 = 0.74
November 1 1 = 0.77
December 31 1 = 0.80
20x1 average 1 = 0.75
The U. S. dollar is the functional currency.
Required:
Prepare a schedule remeasuring the December 31, 20X1, trial balance from Swiss francs to dollars.