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 OperationCanada
	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 payabledue 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

Branch OperationMexico
	Debit			Credit
Accounts payable				Ps	62,200
Accumulated depreciation					37,200
Building and equipment	Ps	52,000
Cash		65,000
Depreciation expense		3,200
Inventory (beginningincome statement)		35,000
Inventory (endingincome statement)					34,000
Inventory (endingbalance sheet)		34,000
Purchases		69,000
Receivables		33,000
Salary expense		10,200
Sales					136,000
Main office					32,000
Totals	Ps	301,400		Ps	301,400

Additional Information

The Canadian subsidiarys functional currency is the Canadian dollar, and Sendelbachs 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	C$	0.29
January 1, 2020		0.31
Weighted average rate for 2020		0.33
December 31, 2020		0.34

The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $48,950 credit (positive) balance.

The subsidiarys common stock was issued in 2007 when the exchange rate was $0.41 = C$1.

The subsidiarys 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	US$	0.70
April 1, 2020		0.69
June 1, 2020		0.68
Weighted average rate for 2020		0.67
December 31, 2020		0.65

Remeasure the Mexican operations 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.