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 | Credit | |||
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 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: |
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 |
6. | The U.S. dollar is the functional currency for the foreign subsidiary. |
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an init...
On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 62,000. RoadTime's December 31, 20X1, trial balance in SFr is as follows Debit SFr 8,500 22.000 6,900 26,000 109,000 Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock SFr 10,200 12,900 50,500 62,000 169,700 Sales Cost of Goods Sold 72,000 10,200 33,500 17,200 Depreciation...
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On January 1, 20X1, Popular Creek Corporation organized RoadTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 65.000. RoadTime's December 31, 20x1. trial balance in SFr is as follows Debit SFr 8.300 22,500 5.400 28.000 102,000 Credit Cash Accounts Recelvable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid SFr 10.900 13.900 51.500 65.000...
Someone please help me answer this On January 1, 20X1. Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 69,000. SunTime's December 31, 20X1. trial balance in SFr is as follows: Credit Debit SFr 8, 200 22, See 6. 209 28,500 185, ees Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant & Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation...
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