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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Credit C$ 13,860 29,000 C$ 169,000 28,000 52,000 205,000 7,100 21,000 5,200 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 Notes payable-due in 2023 Receivables Retained earnings, 1/1/20 Salary expense Sales Utility expense Branch operation Totals 81,000 71,000 70,000 137,590 25,000 314,000 9, 200 7,350 C$ 622,650 C$ 622,650 Ps Branch OperationMexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 42,000 Cash 60,000 Depreciation expense 2.200 Credit 54,200 19, 200 VEPI CLE 25,000 29,000 LUI CAPCS Inventory (beginning-income statement) Inventory (ending-income statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Totals 29,000 70,000 23,000 9,200 126,000 32,000 PS 260,400 Ps 260,400 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$0.23 = 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$7,350 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.28 0.30 0.32 0.33 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $38,950 credit (positive) balance. The subsidiary's common stock was issued in 2007 when the exchange rate was $0.47 = C$1. The subsidiary's December 31, 2019, retained earnings balance was C$137,590, an amount that has been translated into U.S.$69,323. The applicable currency exchange rates for 1 C$ 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 Reg B 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 Inventory (beginningincome statement) Inventory (endingincome statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Total 0 0 Req A Req B and C 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. 1 (Round U.S. Dollar values to 2 decimal places. Amounts to be deducted and losses should be indicated with a minus sign.) Show less es SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar Income Statement: U.S. Dollar C$ C$ 0 $ 0.00 C$ 0 $ 0.00 Statement of Retained Earnings: Statement of Retained Earnings: Retained earnings, 1/1/20 C$ Retained earnings, 12/31/20 C$ 0 $ 0.00 Balance Sheet: Assets: C$ Total C$ 0 $ 0.00 Liabilities and Equities: c C$ Total C$ 0 $ 0.00