Advance Accounting

Credit Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto. Although this wholly owned company 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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Accounts payable C$ 55,370 Accumulated depreciation 48,000 Buildings and equipment C$ 180,000 Cash 47,000 Common stock 71,000 Cost of goods sold 224,000 Depreciation expense 9,000 Dividends, 4/1/20 Gain on sale of equipment, 6/1/20 Inventory Notes payable-due in 2023 Receivables Retained earnings, 1/1/20 256,590 Salary expense 44,000 Sales 333,000 Utility expense Branch operation 8,960 Totals c$ 761, 060 C$ 761,060 40,000 7,100 100,000 90,000 89,000 11,100 Credit Pa 75,600 55,100 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 61,000 Cash 69,500 Depreciation expense 4,100 Inventory (beginning-income statement) 44,000 Inventory (ending-income statement) Inventory (ending-balance sheet) 38,500 38,500