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. (CS). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the US, parent. corporation. Both ledgers for the subsidiary are as follows: - The Canadian subsidiary's functional currency is the Canadian dollar, and Sendelbach's reporting currency is the US 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 cso.23 = Ps 1 - Purchases of inventory were made evenly throughout the fiscal year. - Beginning inventory was acquired evenly throughout 2019 , ending inventory was acquired eventy throughout 2020. - The Mair Office account on the Mexican records should be considered an equity account. This balance was remeasured into C 7,350 on December 31,2020 . - Currency exchange rates for 1 Ps applicable to the Mexican operation follow: - The December 31, 2019, consolidated balance sheet reported a cumulative transiation adjustment with a \$38,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.47=C51. - The subsidiary's December 31, 2019, retained earnings balance was C\$137,590, an amount that has been translated into U.S.\$69,323 - The applicable currency exchange rates for 1Cs for transiation purposes are as follows: 0. 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 subsidary in its functional currency, Canadian doliars c. Translate the Canadian dollar functional currency financial statements into US, 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. (CS). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the US, parent. corporation. Both ledgers for the subsidiary are as follows: - The Canadian subsidiary's functional currency is the Canadian dollar, and Sendelbach's reporting currency is the US 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 cso.23 = Ps 1 - Purchases of inventory were made evenly throughout the fiscal year. - Beginning inventory was acquired evenly throughout 2019 , ending inventory was acquired eventy throughout 2020. - The Mair Office account on the Mexican records should be considered an equity account. This balance was remeasured into C 7,350 on December 31,2020 . - Currency exchange rates for 1 Ps applicable to the Mexican operation follow: - The December 31, 2019, consolidated balance sheet reported a cumulative transiation adjustment with a \$38,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.47=C51. - The subsidiary's December 31, 2019, retained earnings balance was C\$137,590, an amount that has been translated into U.S.\$69,323 - The applicable currency exchange rates for 1Cs for transiation purposes are as follows: 0. 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 subsidary in its functional currency, Canadian doliars c. Translate the Canadian dollar functional currency financial statements into US, dollars so that Sendelbach can prepare consolidated financial statements
