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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation-Canada Accounts payable Buildings and equipment Cash Accumulated depreciation Debit Credit C$ 25,650 35,000 C$ 175,000 34,000 Common stock 58,000 Cost of goods sold 211,000 Depreciation expense 7,700 Dividends, 4/1/20 27,000 Gain on sale of equipment, 6/1/20 5,800 Inventory 87,000 Notes payable due in 2023. 77,000 Receivables Retained earnings, 1/1/20 Salary expense Sales 76,000 143,590 31,000 320,000 Utility expense Branch operation Totals 9,800 6,540 C$ 665,040 C$ 665,040 Branch Operation-Mexico Debit Credit Accounts payable Accumulated depreciation Building and equipment Cash PS 55,800 22,800 Ps 48,000 63,000 Depreciation expense Inventory (beginning-income statement) Inventory (ending-income statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Totals 2,800 31,000 32,000 32,000 65,000 29,000 9,800 132,000 38,000 Ps 280,600 Ps 280,600 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 2010 when the currency exchange rate was C$0.17 = 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$6,540 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.22 0.24 0.26 0.27 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $44,950 credit (positive) balance. The subsidiary's common stock was issued in 2007 when the exchange rate was $0.53 = C$1. The subsidiary's December 31, 2019, retained earnings balance was C$143,590, an amount that has been translated into U.S.$65,423. The applicable currency exchange rates for 1 C$ 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. 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. Complete this question by entering your answers in the tabs below. Req A Req B and C Remeasure the Mexican operation's account balances into Canadian dollars. (Note: Back in to the beginning net monetary asset or liability position.) (Input all amounts as positive values.) Canadian Dollars Debit Credit Accounts payable Accumulated depreciation 15,066 3,876 Building and equipment 8,160 Cash 17,010 Depreciation expense 476 Inventory (beginning-income statement) 6,820 Inventory (ending-income statement) 8,320 Inventory (ending-balance sheet) 8,320 Purchases 16,900 Receivables 7,830 Salary expense Sales Main office Remeasurement loss Total 2,548 34,320 6,540 58 68,122 68,122 < Req A Req B and C > a. Remeasure the Mexican operation's account balances into Canadian dollars. (Note: Back into the beginning net monetary asset o 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 consolidat financial statements. Complete this question by entering your answers in the tabs below. Req A Req B and C b. Prepare financial statements (income statement, statement of retained eamings, 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.) SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar U.S. Dollar Income Statement: Sales CS Cost of goods sold Gross profit CS 0 $ 0.00 Depreciation expense Salary expense Utility expense Gain on sale of equipment CS 0 $ 0.00 Statement of Retained Earnings: Retained earnings, 1/1/20 CS Retained earnings, 12/31/20 C$ 0 $ 0.00 Balance Sheet: Assets: CS Total C$ 0 $ 0.00 Show less