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$). As of December 31, 2017, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Debit Accounts payable Credit C$ 37,530 Accumulated depreciation 40,000 Buildings and equipment C$ 180,000 Cash 39,000 Common stock 63,000 Cost of goods sold 216,000 Depreciation expense 8,200 Dividends, 4/1/17 32,000 Gain on sale of equipment, 6/1/171 6,300 Inventory 92,000 Notes payable-due in 2020 82,000 Receivables Retained earnings, 1/1/17 Salary expense Sales Utility expense Branch operation Totals 81,000 148,590 36,000 325,000 10,300 7,920 C$ 702,420 C$ 702,420 Accounts payable Branch Operation-Mexico Debit Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginning-income statement) Inventory (ending-income statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Totals Credit Ps 63,800 38,300 Ps 53,000 65,500 3,300 36,000 34,500 34,500 70,000 34,000 10,300 137,000 33,000 Ps 306,600 Ps 306,600 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 2007 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 2016; ending inventory was acquired evenly throughout 2017. The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,920 on December 31, 2017. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2016 January 1, 2017 Weighted average rate for 2017 December 31, 2017 C$ 0.28 0.30 0.32 0.33 The December 31, 2016, consolidated balance sheet reported a cumulative translation adjustment with a $49,950 credit (positive) balance. The subsidiary's common stock was issued in 2004 when the exchange rate was $0.42 = C$1. The subsidiary's December 31, 2016, retained earnings balance was C$148,590, an amount that has been translated into U.S.$71,703. The applicable currency exchange rates for 1 C$ for translation purposes are as follows: January 1, 2017 April 1, 2017 June 1, 2017 Weighted average rate for 2017 December 31, 2017 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 Req 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.) Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginning-income statement) Inventory (ending-income statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Total Canadian Dollars Debit Credit 0 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 A SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2017 Income Statement: CS Canadian Dollar U.S. Dollar CS 0 $ 0.00 CS 0 $ 0.00 Statement of Retained Earnings: Retained earnings, 1/1/15 Cs 3 Retained earnings, 12/31/15 CS 0 $ 0.00 Balance Sheet Balance Sheet: Assets: C$ Total C$ 0 $ 0.00 Liabilities and Equities: C$ Total CS 0 $ 0.00