Please give me a correct answer for Req B and C. Thanks
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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Credit Accounts payable c$ 35, 470 Accumulated depreciation 39,000 Buildings and equipment C$ 179,000 Cash 38,000 Common stock 62,000 Cost of goods sold 215,000 Depreciation expense 8,100 Dividends, 4/1/20 31,000 Gain on sale of equipment, 6/1/20 6,200 Inventory 91,000 Notes payable-due in 2023 81,000 Receivables 80,000 Retained earnings, 1/1/20 147,590 Salary expense 35,000 Sales 324,000 Utility expense 10,200 Branch operation 7,960 Totals C$ 695,260 C$ 695,260 Credit Ps 62,200 37,200 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 52,000 Cash 65,000 Depreciation expense 3,200 Inventory beginning-income statement) 35,000 Inventory (ending-income statement) Inventory (ending-balance sheet) 34,000 Purchases 69,000 Receivables 33,000 Salary expense 10,200 Sales Main office Totals Ps 301,400 34,000 136,000 32,000 Ps 301,400 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 C$0.24 = 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$7,960 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.29 0.31 0.33 0.34 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $48,950 credit (positive) balance. . The subsidiary's common stock was issued in 2007 when the exchange rate was $0.41 = C$1. . The subsidiary's December 31, 2019, retained earnings balance was C$147,590, an amount that has been translated into U.S.$72,343. The applicable currency exchange rates for 1 C$ for translation purposes are as follows: January 1, 2020 April 1, 2020 June 1, 2020 Weighted average rate for 2020 December 31, 2020 US$ 0.70 0.69 0.68 0.67 0.65 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. Req A Req B and C Remeasure the Mexican operation's account balances into Canadian dollars. (Note: Back into the beginning net monet asset or liability position.) (Input all amounts as positive values.) Canadian Dollars Debit Credit Accounts payable 21,148 Accumulated depreciation 8,928 Building and equipment 12,480 Cash 22,100 Depreciation expense 768 Inventory (beginning-income 10,150 statement) Inventory (endingincome 11,220 statement) Inventory (ending-balance sheet) 11,220 Purchases 22,770 Receivables 11,220 Salary expense 3,366 Sales 44,880 Main office 7,960 Remeasurement loss 62 Total 94,136 94,136 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: Sales CS Cost of goods sold Gross profit Depreciation expense Salary expense Utility expense Gain on sale of equipment U.S. Dollar C$ 0 $ 0.00 OOOOOO > Remeasurement loss Net income OS (62) (62) C$ $ 0.00 C$ Statement of Retained Earnings: Retained earnings, 1/1/20 Net income Dividends Retained earnings, 12/31/20 C$ 0 $ 0.00 C$ Balance Sheet: Assets: Cash Receivables Inventory Building and equipment Accumulated depreciation C$ 0 0.00 C$ Total Liabilities and Equities: Accounts payable Notes payable Common stock Retained earnings Total C$ 0 0.00
