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, 2015, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows:

Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is head Toronto. Although this wholly owned company operates primarily in Canada, it engages in some transactions through a bra Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dollars December 31, 2015, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent co ledgers for the subsidiary are as follows: Main OperationCanada Debit Accounts payable Accumulated depreciation Buildings and equipment Cash Common stock Cost of goods sold Depreciation expense Dividends, 4/1/15 Gain on sale of equipment, 6/1/15 Inventory Notes payabledue in 2018 Receivables Retained earnings, 1/1/15 Salary expense Sales Utility expense Branch operation Totals Credit C$ 27,510 36,000 C$ 176,000 35,000 59,000 212,000 7,800 28,000 5,900 88,000 78,000 77,000 144,590 32,000 321,000 9,900 6,300 C$ 672,000 C$ 672,000 Branch OperationMexico Debit Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginningincome statement) Inventory (endingincome statement) Inventory (endingbalance sheet) Purchases Receivables Salary expense Sales Main office Totals Credit Ps 58,400 22,900 Ps 49,000 63,500 2,900 32,000 32,500 32,500 66,000 30,000 9,900 133,000 39,000 Ps 285,800 Ps 285,800 Additional Information The Canadian subsidiary's functional currency is the Canadian dollar, and Sendelbach's reporting currency is the U.S. 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 wa Purchases should be assumed as having been made evenly throughout the fiscal year. Beginning inventory was acquired evenly throughout 2014; ending inventory was acquired evenly throughout 2015. The Main Office account on the Mexican records should be considered an equity account. This balance was remeasure on December 31, 2015. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2014 January 1, 2015 Weighted average rate for 2015 December 31, 2015 C$ 0.21 0.23 0.25 0.26 The December 31, 2014, consolidated balance sheet reported a cumulative translation adjustment with a $45,950 cred balance. The subsidiary's common stock was issued in 2004 when the exchange rate was $0.54 = C$1. The subsidiary's December 31, 2014, Retained Earnings balance was C$144,590.00, a figure that has been translated The applicable currency exchange rates for 1 C$ for translation purposes are as follows: January 1, 2015 April 1, 2015 June 1, 2015 Weighted average rate for 2015 December 31, 2015 a. US$ 0.70 0.69 0.68 0.67 0.65 Remeasure the Mexican operation's figures into Canadian dollars. (Hint: Back into the beginning net monetary asset o 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 (endingbalance sheet) Purchases Receivables Salary expense Sales Main office Total 0 0 b. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian functional currency and Prepare consolidated financial statement in parent currency (that is U.S. dollars). (Round U.S. 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, 2015 Canadian Dollar U.S. Dollar Income Statement: Sales Cost of goods sold Gross profit Depreciation expense Salary expense Utility expense Gain on sale of equipment Remeasurement loss Net income Statement of Retained Earnings: Retained earnings, 1/1/15 Net income Dividends Retained earnings, 12/31/15 Balance Sheet: Assets: Cash Receivables Inventory Buildings and equipment Accumulated depreciation C$ C$ 0 $0.00 C$ 0 $0.00 0 $0.00 0 $0.00 0 $0.00 C$ C$ C$ Total assets Liabilities and Equities: Accounts payable Notes payable C$ Total liabilities and equities C$ C$