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

  1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek’s books show a $4,000 payable to RoadTime.
  2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1.
  3. Equipment is depreciated by the straight-line method with a 10-year life and no residual value. A full year’s depreciation is taken in the year of acquisition. The equipment was acquired on March 1.
  4. The dividends were declared and paid on November 1.
  5. Exchange rates were as follows:
January 1 1SFr=$.73
March 1 1SFr=$.74
November 1 1SFr=$.77
December 31 1SFr=$.80
20X1 Average 1SFr=$.75


  1. The Swiss franc is the functional currency.



Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars.

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