ili = ant Normal 4 Replace 1 No Spac... Heading 1 Heading 2 Create and Share Select- Paragraph Adobe PDF Sign Styles 4. Sendelbach Corporation is a U.S.-based organization with operations Editing Adobe Acrust 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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Credit Accounts payable C$ 51, 510 Accumulated depreciation 47,000 Buildings and equipment C$187,000 Cash 46,000 Common stock 70,000 Cost of goods sold 223,000 Depreciation expense 8,900 Dividends, 4/1/20 39,000 7,000 Gain on sale of equipment, 6/1/20 99,000 Inventory 89,000 Notes payable-due in 2013 98,000 Receivables 155,590 Retained earnings, 1/1/20 43,000 Salary expense 332,000 Sales 11,000 Utility expense 7.200 Focus Rranch oneration IQLI cibliyinvestigate 64F O Paragraph Editing Adobe Ausb Totals Styles C$752, 100 C$752,100 Credit Ps 74,000 52,000 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 60,000 Cash 69,000 Depreciation expense 4,000 Inventory (beginning-income statement) 43,000 Inventory (ending-income statement) Inventory (ending-balance sheet) 38,000 Purchases 77,000 Receivables 41,000 38,000 11,000 Four Salary expense Salas omte Select Adobe PE Styles Paragraph Sales Main office Totals Editing Adet F ITUU 35,000 Ps343,000 Ps343,000 . 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 2010 when the currency exchange rate was $0.25 = 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$7.200 on December 31, 2020 Currency exchange rates for 1 Ps applicable to the Mexican operation follow: . Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 c$0.20 0.22 0.24 0.25 Drout Investigate 64'F o S x AA- AaBbCcDc AabbccDc AaBbc AaBbce I Normal 1 No Spac... Heading! Heading 2 Replace Create and Share Request Adobe PDF Signaturel Adobe Acrobat Font Editing W Paragraph Styles The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $56,950 credit (positive) balance. The subsidiary's common stock was issued in 2007 when the exchange rate was $0.49 = C$1. The subsidiary's December 31, 2019, retained earnings balance was C$155,590, an amount that has been translated into U.S.$66,663. The applicable currency exchange rates for 1 C$ for translation purposes are as follows: . January 1, 2020 April 1, 2020 June 1, 2020 Weighted average rate for 2020 US$0.70 0.69 0.68 0.67 0.65 December 31, 2020 recta 51 o O Clopack Company manufactures one product that goes through one processing de References Mailings Review View Help Acrobat ut Boris Adjihonu G 5 Create and Share Reque Adobe PDF Signat Adobe Acrobat Styles Aa- A 21 Find - AaBbCcDc AaBbCD AaBb C AaBbcc Pc Replace D.A. Normal 1 No Spac. Heading Heading 2 Select- Paragraph Editing a. Remeasure the Mexican operation's account balances into Canadian dollars. (Note: Back into the beginning net monetary asset or liability position.) 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. AL Paragraph Requirement A Styles Editing Remeasure the Mexican operation's account balances into Canadian dollars. (Note: Back into the beginning net monetary asset or liability position.) (Input all amounts as positive values.) Canadian Dollars Debit Credit Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginning-income statement) Inventory (ending-income statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Total ro o Requirements B and C 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. (Round U.S. Dollar values to 2 decimal places. Amounts to be deducted and losses should be indicated with a minus sign.) Show less SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar Income Statement: CS U.S. Dollar Focu Sebestigate le to search Paragraph Styles Editing Adobe Acre C$ Statement of Retained Earnings: Retained earnings, 1/1/20 C$ Retained earnings, ce Foor 54' RE Type here to search Font Adobe 6 Styles 5 Editing A Paragraph Retained earnings, 12/31/20 C$ Balance Sheet: Assets: C$ C$ Total Liabilities and Equities: C$ Total CS F Type here to search