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 (CS) 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 $ 11,860 28,000 $ 168,000 27,000 51,000 204,000 7,000 20,000 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 Notis payable due in 2023 Receivables Retained earnings. 1/1/20 Salary experts Sales Utility expense Tranch operation Total 5.100 50,000 70,000 69,00 136,590 24.900 313,000 9,160 7.450 C$ 615,550 05.615,550 PS Credit 51,600 19, 100 Branch Operation Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 41,000 Cash 59,500 Depreciation expense 2,100 Inventory (beginning-income statement) 24,000 Inventory (endine-income statement) Inventory (ending balance sheet) 28,500 Purchases 69,000 Receivables 22,000 Salary expense 9.100 Sales Main office Totals D's 255,200 200, 500 125,000 21.000 Ps255,200 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 C50.24 = 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$7.450 on December 31, 2020, Currency exchange rates for 1 Ps applicable to the Mexican operation follow . Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.29 0.31 0.33 0.34 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $37.950 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 CS136,590, an amount that has been translated into US $69.903 The applicable currency exchange rates for 1 CS for translation purposes are as follows: January 1, 2020 April 1, 2020 June 1, 2020 Heighted average rate for 2020 December 31, 2020 US$ 0.70 0.69 0.68 0.67 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 Tinancial statements HO Complete this question by entering your answers in the tabs below. Reg Reg D and C 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 Irwontory (boginning-Income statement) Inventory (ending-income statement wentory (ending-balance sheet) Purchases Receivables Salary expense Sales Main Office Total Saved He 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 US Dollar CS CS Statement of REAS Retained aming 11/20 cs Red cargs 12120