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$ $21,695$

Accumulated depreciation $33,000$

Buildings and equipment C$ $173,000$

Cash $32,000$

Common stock $56,000$

Cost of goods sold $209,000$

Depreciation expense $7,500$

Dividends, $4/1/2025,000$

Gain on sale of equipment, $6/1/205,600$

Inventory $85,000$

Notes payable$$due in $202375,000$

Receivables $74,000$

Retained earnings, $1/1/20141,590$

Salary expense $29,000$

Sales $318,000$

Utility expense $9,600$

Branch operation $6,785$

Totals C$ $650,885$ C$ $650,885$

Branch Operation$$Mexico

Debit Credit

Accounts payable Ps $53,100$

Accumulated depreciation $20,100$

Building and equipment Ps $46,000$

Cash $62,000$

Depreciation expense $2,600$

Inventory $($beginning$$income statement$)29,000$

Inventory $($ending$$income statement$)31,000$

Inventory $($ending$$balance sheet$)31,000$

Purchases $63,000$

Receivables $27,000$

Salary expense $9,600$

Sales $130,000$

Main office $36,000$

Totals Ps $270,200$ Ps $270,200$

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\mathrm{.}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$$6,785$ on December $31,2020.$

Currency exchange rates for $1$ Ps applicable to the Mexican operation follow:

Weighted average, $2019$ C$ $0\mathrm{.}24$

January $1,20200\mathrm{.}26$

Weighted average rate for $20200\mathrm{.}28$

December $31,20200\mathrm{.}29$

The December $31,2019,$ consolidated balance sheet reported a cumulative translation adjustment with a $$42,950$ credit $($positive$)$ balance.

The subsidiary$$s common stock was issued in $2007$ when the exchange rate was $$0\mathrm{.}51=$ C$$1.$

The subsidiary$$s December $31,2019,$ retained earnings balance was C$$141,590,$ an amount that has been translated into U$.$S$.$$$66,803.$

The applicable currency exchange rates for $1$ C$ for translation purposes are as follows:

January $1,2020$ US$ $0\mathrm{.}70$

April $1,20200\mathrm{.}69$

June $1,20200\mathrm{.}68$

Weighted average rate for $20200\mathrm{.}67$

December $31,20200\mathrm{.}65$

Remeasure the Mexican operation$$s account balances into Canadian dollars. $($Note: Back into the beginning net monetary asset or liability position.$)$

Prepare financial statements $($income statement, statement of retained earnings, and balance sheet$)$ for the Canadian subsidiary in its functional currency, Canadian dollars.

Translate the Canadian dollar functional currency financial statements into U$.$S$.$ dollars so that Sendelbach can prepare consolidated financial statements.