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) 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 65.000 155,500 71.500 10.900 31,000 17,200 SFr296,800 SFr296,800 Total Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $4,320 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 $ 1 0.73 1 0.74 1 0.77 1 0.80 1 0.75 January 1 March 1 November 1 December 31 20X1 average 6 The Swiss franc is the functional currency. Required: Prepare a schedule translating the December 31, 20X1, trial balance from Swiss francs to dollars. (If no adjustment is needed, select 'No entry necessary) ROADTIME COMPANY Trial Balance Translation Schedule December 31, 20X1 U.S. Dollars Cash Accounts receivable (net) Receivable from Popular Creek Inventory Plant and equipment Cost of goods sold Depreciation expense Operating expense Dividends paid S 0 Total 0 Total debits Accumulated depreciation Accounts payable Bonds payable Common stock Sales 0 Total $ S Total credits

Answer 1

ROADTIME COMPANY
Trial Balance Translation Schedule
December 31, 20X1
	SFr	Exchange rate	U.S dollar
Cash	8,300	0.8	6640
Accounts receivable (net)	22,500	0.8	18000
Receivable from Popular Creek	5,400	0.8	4320
Inventory	28,000	0.77	21560
Plant and equipment	102000	0.74	75480
Cost of goods sold	71,500		53065
Depreciation expense	10,900	0.74	8066
Operating expense	31,000	0.75	23250
Dividends paid	17,200	0.77	13244
Remeasurement loss			836
Total debits	296,800		224,461
Accumulated depreciation	10,900	0.74	8066
Accounts payable	13,900	0.8	11120
Bonds payable	51,500	0.8	41200
Common stock	65,000	0.73	47450
Sales	155500	0.75	116625
Total credits	296,800		224,461

Working Note:-

* Cost of Goods Sold= Purchase - Closing Inventory

=((71500+28000)*0.75-21560)=53065