On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 60,000. RoadTime’s December 31, 20X1, Trial balance in SFr is as follows:
| Debit (SFr) | Credit (SFr) | ||
| Cash | 7000 | ||
| Accounts Receivable | 20000 | ||
| Receivable from Popular Creek | 5000 | ||
| Inventory | 25000 | ||
| Plant and Equipment | 100000 | ||
| Accumulated Depreciation | 10000 | ||
| Accounts Payable | 12000 | ||
| Bonds Payable | 50000 | ||
| Common Stock | 60000 | ||
| Sales | 150000 | ||
| Cost of goods sold | 70000 | ||
| Depreciation Expense | 10000 | ||
| Operating Expense | 30000 | ||
| Dividend paid | 15000 | ||
| Total | SFr282,000 | SFr 282,000 |
Additional Information
- The receivable from Popular Creek is denominated in Swiss francs. Popular Creek’s books show a $4,000 payable to RoadTime.
- Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1.
- Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year’s depreciation is taken in the year of acquisition. The equipment was acquired on March 1.
- The dividends were declared and paid on November 1.
- Exchange rates were as follows:
| January 1 | 1SFr=$.73 |
| March 1 | 1SFr=$.74 |
| November 1 | 1SFr=$.77 |
| December 31 | 1SFr=$.80 |
| 20X1 Average | 1SFr=$.75 |
- The Swiss franc is the functional currency.
Required
Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.
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