Problem 8-35 (Algo) (LO 8-3, 8-4) 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$) As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Credit C$ 45,535 44,000 CS 184, Bee 43,000 67.000 220,000 3.600 36.000 Accounts payable Accumulated depreciation Buildings and equipment Cash Common stock Cost of goods sold Depreciation expense Dividends, 4/1/20 Gain on sale of equipment, 6/1/20 Inventory Notus payable-due in 2023 Receivables Retained earnings, 1/1/20 Salary expense Sales Utility expense Branch operation Totals 6,700 96,000 86,000 85,000 152,590 40,000 329,000 10,700 2.525 C$ 730,025 $ 730,825 Credit PS 70,700 42,200 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 57,000 Cash 67,500 Depreciation expense 3,700 Inventory (beginning-income statement) 40,000 Inventory (ending-income statement) Inventory (ending-balance sheet) 36,500 Purchases 74,000 Receivables 38,000 Salary expense 1,700 Sales Main office Totals Ps 327,400 36,500 141,000 37, cee Ps 327,400 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 $0.19 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$7.525 on December 31, 2020. Currency exchange rates for 1 Pis applicable to the Mexican operation follow . Welighted avera, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 CS 0.24 0.26 0.28 0.29 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $53,950 credit (positive) balance, The subsidiary's common stock was issued in 2007 when the exchange rate was $0,46 - C$1. The subsidiary's December 31, 2019, retained earnings balance was $152.590, an amount that has been translated into U.S.$68,943 The applicable currency exchange rates for 1 C$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 llability 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 Complete this question by entering your answers in the tabs below. Reg A Reg Band 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 20,503 Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (begirming-Income statement) Inventory (ending income statement) Inventory (ending-balance sheet Purchases Receivables Salary ponse Sales Main office 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 U.S. Dollar SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar Income Statement Sales CS Cost of goods sold Gross profit CS 0 Depreciation expense Salary expense Utility expense Gain on sale of equipment s 0.00 Remeasurement gain Not incomo CS 0 $ 0.00 Statement of Retamed Earnings Problem 8-35 (Algo) (LO 8-3, 8-4) 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$) As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Credit C$ 45,535 44,000 CS 184, Bee 43,000 67.000 220,000 3.600 36.000 Accounts payable Accumulated depreciation Buildings and equipment Cash Common stock Cost of goods sold Depreciation expense Dividends, 4/1/20 Gain on sale of equipment, 6/1/20 Inventory Notus payable-due in 2023 Receivables Retained earnings, 1/1/20 Salary expense Sales Utility expense Branch operation Totals 6,700 96,000 86,000 85,000 152,590 40,000 329,000 10,700 2.525 C$ 730,025 $ 730,825 Credit PS 70,700 42,200 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 57,000 Cash 67,500 Depreciation expense 3,700 Inventory (beginning-income statement) 40,000 Inventory (ending-income statement) Inventory (ending-balance sheet) 36,500 Purchases 74,000 Receivables 38,000 Salary expense 1,700 Sales Main office Totals Ps 327,400 36,500 141,000 37, cee Ps 327,400 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 $0.19 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$7.525 on December 31, 2020. Currency exchange rates for 1 Pis applicable to the Mexican operation follow . Welighted avera, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 CS 0.24 0.26 0.28 0.29 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $53,950 credit (positive) balance, The subsidiary's common stock was issued in 2007 when the exchange rate was $0,46 - C$1. The subsidiary's December 31, 2019, retained earnings balance was $152.590, an amount that has been translated into U.S.$68,943 The applicable currency exchange rates for 1 C$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 llability 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 Complete this question by entering your answers in the tabs below. Reg A Reg Band 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 20,503 Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (begirming-Income statement) Inventory (ending income statement) Inventory (ending-balance sheet Purchases Receivables Salary ponse Sales Main office 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 U.S. Dollar SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar Income Statement Sales CS Cost of goods sold Gross profit CS 0 Depreciation expense Salary expense Utility expense Gain on sale of equipment s 0.00 Remeasurement gain Not incomo CS 0 $ 0.00 Statement of Retamed Earnings