CS 39.605 41.000 Sendelbach Corporation is a US-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto Although this wholly owned company operates primarily in Canada, tengages 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 (C5). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the US parent corporation Both ledgers for the subsidiary are as follows: Pain Operation Canada Creole Accounts payable Accumulated depreciation Buildings and tapet CS 1.000 40,000 Comstock Cost of goods sold 217,000 Depreciation expense Dividends. 4/1/20 35,000 in one of t, 6/1/20 Inventory yabled in 2003 Receisables 2000 Retained ning 11/20 149,590 Salary ex Sales 325.000 3.000 70 10,400 Branch operation Totals c5709 $ 209.59 De DS 4.000 000 Branch Operation Accounts payable Accumulated depreciation Bulding and pent Cash bepreciation opense Inventory be sent Intry in the statement Tenterandelante het Receivable 35. 5.000 stic Total 11 111 Additional Information The Canadian subsidiary's functional currency is the Canadian dollar and Sendelbach's reporting currency is the US 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 2010 when the currency exchange rate was $0.22= PS 1 Purchases of inventory were made evenly throughout the fiscal year. Beginning inventory was acquired evenly throughout 2019, ending inventory was acquired evenly throughout 2020 The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,895 on December 31, 2020, Currency exchange rates for 1 Pis applicable to the Mexican operation follow . Welighted avere 2018 January 1, 2020 Welighted average rate for 2020 December 31, 2020 3 0.22 0.29 0.31 0.33 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $50,950 credit (positive) balance The subsidiary common stock was issued in 2007 when the exchange rate was 50,43 -051 . The subulidarys December 31, 2019 retained earnings balance was $19.590, un amount that has been translated into US 571043 . The applicable currency exchange rates for 1 cs for translation purposes are as follows: January 1, 2010 0:20 Tunel 20 Weighted averate for 2020 a. Remeasure the Mexican operation account balances into Canadian dollars. (Note: Back into the beginning the monetary asset on ability position b. Prepare financial statements (income statement statement of retained earnings and balance sheets for the Canadian subsidiary in its functional currency, Canadian dollars c. Translate the Canadian dollar functional currency financial statements into US dollars so that Sendelbach can prepare consolidated financial statements Ted Complete this question to entering your answers in the fatos below Red Band emite the Medican operation's account balances bites Canadian dollars. (Note: Back into the beginning net monetary y position) (pas puede 20760 BITTE console Autod depreciation Building and equipment C Denne tory beginning-Income 11.500 21.120 Pach 22.010 1200 SD RC consolidated financial statements, (Round U.S. Dollar values to 2 decimal places. Amounts to be deducted and losses should be indicated with a SENDELBACH CORPORATION Financial Statemetits For the Year Ended December 31, 2020 Canadian Dollar U.S. Dollar Income Statement Sales GS 368.780 Cost of goods sold Gross profit OS 368.780 $ 0.00 Depreciation expense Salary expense Utility expense (Gain on sale of equipment Remeasurement loss Net income cs 368 780 $ 0.00 18 Statement of Retained Earnings Retained earnings, 1/1/20 Net Income Dividends Retained earnings. 12/31/20 CS 5 0.00 cs Balance Sheet Assots: Cash Receivables Imeentory Building and equipment Accumulated depreciation Salary expense utility expense Gain on sale of equipment Remeasurement loss Net income CS 368 780 5 0.00 cs Statement of Retained Earnings Retained earnings. 1/1/20 Net income Dividends Retained earnings, 12/31/20 cs 0 S 0.00 cs Balance Sheet Assets: Cash Receivables Inventory Building and equipment Accumulated depreciation CS 05 0.00 CS Total Liabilities and Equities: Accounts payable Notes payable Common stock Retained earnings Cumulative translation adjustment Total 05 0.00