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, 2013, the subsidiary is preparing financial statements in anticipation of consolidation ith the U.S. parent corporation. Both ledgers for the subsidiary are as follows:

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 2005 when the currency exchange rate was C$0.25 = Ps 1.

Purchases should be assumed as having been made evenly throughout the fiscal year.

Beginning inventory was acquired evenly throughout 2012; ending inventory was acquired evenly throughout 2013.

The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,530 on December 31, 2013.

Currency exchange rates for 1 Ps applicable to the Mexican operation follow:

The December 31, 2012, consolidated balance sheet reported a cumulative translation adjustment with a $36,950 credit (positive) balance.

The subsidiary?s common stock was issued in 2004 when the exchange rate was $0.45 = C$1.

The subsidiary?s December 31, 2012, Retained Earnings balance was C$135,530, a figure that has been translated into US$70,421.

The applicable currency exchange rates for 1 C$ for translation purposes are as follows:

a. Remeasure the Mexican operation?s figures into Canadian dollars. (Hint: 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.

c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.

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, 2013, the subsidiary is preparing financial statements in anticipation of consolidation ith the U.S. parent corporation. Both ledgers for the subsidiary are as follows: 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 2005 when the currency exchange rate was C$0.25 = Ps 1. Purchases should be assumed as having been made evenly throughout the fiscal year. Beginning inventory was acquired evenly throughout 2012; ending inventory was acquired evenly throughout 2013. The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,530 on December 31, 2013. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: The December 31, 2012, consolidated balance sheet reported a cumulative translation adjustment with a $36,950 credit (positive) balance. The subsidiary's common stock was issued in 2004 when the exchange rate was $0.45 = C$1. The subsidiary's December 31, 2012, Retained Earnings balance was C$135,530, a figure that has been translated into US$70,421. The applicable currency exchange rates for 1 C$ for translation purposes are as follows: a.Remeasure the Mexican operation's figures into Canadian dollars. (Hint: 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. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements. (Hoyle 495-496) Hoyle, Joe. Advanced Accounting, 11th Edition. McGraw-Hill Learning Solutions, 40953. VitalBook file. The citation provided is a guideline. Please check each citation for accuracy before use