On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a su
ID: 2342336 • Letter: O
Question
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 74,000 RoadTime's December 31, 20X1, trial balance in SFr is as follows 1 The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5.440 payable to RoadTime. Purchases of inventory goods are made evenily during the year. Items in the ending inventory were purchased November 1 Equipment is depreciated by the straight-line method with a 10- year life and no residual value. A ful year's depreciation is taken n the year of acquisition. The equipment was acquired on March The dividends were declared and paid on November 1. Exchange rates were as follows: The Swiss franc is the functional Prepare a schedule translating the December 31, 20x1, trial balance from Swiss francs to dollars (If no adjustment is needed, select No entry necessary')Explanation / Answer
Construct a schedule measuring trial balance from Swiss Francs to Dollars RT Company Translation of Trial Balance Dec 31 20X1 Swiss Francs Rate US Dollar Cash 9000 0.8 7200 Accounts Receivable 23500 0.8 18800 Receivable from PC 6800 0.8 5440 Inventory 28000 0.77 21560 Plant and Equipment 109000 0.74 80660 Cost of Goods Sold 72500 53815 Depreciation Expense 11500 0.74 8510 Operating Expense 34000 0.75 25500 Dividends Paid 15800 0.77 12166 Total 310100 233651 Translation Adjustment 729 Total Debits 310100 234380 Accumulated depreciation 11500 0.74 8510 Accounts Payable 13500 0.8 10800 Bonds Payable 54500 0.8 43600 Common Stock 74000 0.73 54020 Sales 156600 0.75 117450 Total Credits 310100 234380 Working: Purchases (28,000+72500) *.75 75375 Less: Closing inventory 21560 Cost of goods sold 53815