Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto, Canada. Although this wholly owned subsidiary operates primarily in Canada, it engages in some transactions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars (C$). As of December 31, 2024, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows:

Additional Information∙ The Canadian subsidiary’s functional currency is the Canadian dollar, and Sendelbach’s reporting currency is the U.S. dollar. The Canadian and Mexican operations are not viewed as separate accounting entities.∙ The building and equipment used in the Mexican operation were acquired in 2014 when the currency exchange rate was C$0.25 = Ps 1.∙ Purchases of inventory were made evenly throughout the fiscal year.∙ Beginning inventory was acquired evenly throughout 2023; ending inventory was acquired evenly throughout 2024.∙ The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,530 on December 31, 2024.∙ Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

∙ The December 31, 2023, consolidated balance sheet reported a cumulative translation adjustment with a $36,950 credit (positive) balance.∙ The subsidiary’s common stock was issued in 2011 when the exchange rate was $0.45 = C$1.∙ The subsidiary’s December 31, 2023, retained earnings balance was C$135,530, an amount that has been translated into US$70,421.∙ The applicable currency exchange rates for 1 C$ for translation purposes are as follows:

a. Remeasure the Mexican operation’s account balances into Canadian dollars.b. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency, Canadian dollars.c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.

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Accounts payable.... Accumulated depreciation Buildings and equipment.. Cash.... Common stock Cost of goods sold Depreciation expense Dividends, 4/1/24. Gain on sale of equipment, 6/1/24 Inventory.... Notes payable-due in 2027 Receivables. Retained earnings, 1/1/24. Salary expense Sales Utility expense. Branch operation.. Totals... Main Operation-Canada Debit C$167,000 26,000 203,000 8,000 28,000 98,000 68,000 26,000 9,000 7,530 C$640,530 Credit C$ 35,000 27,000 50,000 5,000 76,000 135,530 312,000 C$640,530