On January 1, 20X1, Popular Creek Corporation organized RoadTimeCompany as a subsidiary in Switzerland with an initial investmentcost 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 PopularCreek | | 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 Swissfrancs. Popular Creek’s books show a $4,000 payable toRoadTime.
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 a10-year life and no residual value. A full year’s depreciation istaken in the year of acquisition. The equipment was acquired onMarch 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.
Required:
Prepare a schedule remeasuring the December 31, 20X1, trialbalance from Swiss francs to dollars. (If no adjustment is needed,select 'No entry necessary'.)
