Millager Company is a U.S.-based multinational corporation with the U.S. dollar (USD) as its reporting currency. To prepare consolidated financial statements for 2017, the company must translate the accounts of its subsidiary in Mexico, Cadengo S.A. On December 31, 2016, Cadengo's balance sheet was translated from Mexican pesos (MXN) (its functional currency) into U.S. dollars as prescribed by U.S. GAAP. Equity accounts at that date follow:

December 31, 2016 ______________________________ MXN _______________ USD

Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000,000 ..............1,000,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 .............. 200,000

Cumulative translation adjustment (debit balance) . . . . . . . . . . . . . . . . . . . . . . . . (40,000)

Early in 2017, Cadengo negotiated a 5,000 Brazilian real (BRL) loan from a bank in Rio de Janeiro and established a sales office in Brazil. At the end of 2017, Cadengo provided Millager a trial balance that includes all of Cadengo's Mexican peso-denominated transactions for the year. A separate ledger has been maintained for transactions carried out by the Brazilian sales office that are denominated in BRL. A trial balance for the Brazilian real-denominated transactions follows Cadengo's MXN trial balance.

BRAZILIAN SALES OFFICE
Trial Balance
December 31, 2017

Additional Information
The Mexican peso exchange rate for 1 Brazilian real (MXN/BRL) and the U.S. dollar exchange rate for 1 Mexican peso (USD/MXN) during 2017 follow:
Date ______________________________ MXN/BRL ____________ USD/MXN
January 1, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . 6.00 .....................0.080
Average 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.20 .....................0.075
July 1, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.28 .....................0.073
December 31, 2017. . . . . . . . . . . . . . . . . . . . . . ..6.30 .....................0.072
a. Using an electronic spreadsheet, prepare the Mexican peso trial balance for Cadengo S.A. for the year ending December 31, 2017. Verify the amount of remeasurement gain/loss derived as a plug figure in the spreadsheet through separate calculation.
b. Using a second electronic worksheet, translate Cadengo S.A.'s Mexican peso trial balance into U.S. dollars to facilitate Millager Company's preparation of consolidated financial statements. Verify the amount of cumulative translation adjustment derived as a plug figure in the spreadsheet through separate calculation. Note: An additional row must be inserted in the trial balance for the remeasurement gain/loss calculated in part a.

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CADENGO S.A Trial Balance December 31, 2017 8 Debit Credit MXN 1,000,000 3,000,000 5,000,000 2,000,000 15,000,000 Accounts recelvable Inventory Land Machinery and equlpment Accumulated depreclation Accounts payable Notes payable Common stock Retalned earnings, 1/1/17 Sales Cost of goods sold Depreclation expense Rent expense Interest expense DivMdends, 7/1/17 Total MXN 6,000,000 1,500,000 4,000,000 12,000,000 2,500,000 34,000,000 28,000,000 600,000 3,000,000 400,000 2,000,000 MXN60.000,000 MXN60,000,000 Credit Cash Accounts recelvable Noiusi pay:aile Saaes. BRL 5,500 28,000 BRL 5,000 35,000 6,000 500 BRL 40,000 lofal...-_...----..--.-..-- BRL 40,000