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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Accounts payable Accumulated depreciation Credit C$ 55,370 48,000 Buildings and equipment C$ 188,000 Cash 47,000 Common stock 71,000 Cost of goods sold 224,000 Depreciation expense 9,000 Dividends, 4/1/20 40,000. Gain on sale of equipment, 6/1/20 7,100 Inventory 100,000 Notes payable-due in 2023 90,000 Receivables Retained earnings, 1/1/20 Salary expense Sales 69,000 156,590 44,000 333,000 Utility expense 11,100. Branch operation. 8,960 Totals C$ 761,060 C$ 761,060 Branch Operation-Mexico Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginning-Income statement) Toastre sandingan tan Debit Credit Pe 75,600 55,100 P 61,000 69.500 4,100. 44,000 18 An Branch Operation-Mexico Debit Accounts payable Credit Ps 75,600 Accumulated depreciation 55,100 Building and equipment Ps 61,000 Cash 69,500 Depreciation expense 4,100. Inventory (beginning-income statement) 44,000 Inventory (ending-income statement) 38,500 Inventory (ending-balance sheet) 38,500 Purchases Receivables Salary expense Sales Main office Totals 78,000 42,000 11,100 145,000 34,000 Ps 348,200 Ps 348,200 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$0.24- 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$8,960 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.29 0.31 0.33 0.34