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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main Operation Canada Debit Credit Accounts payable c$ 49,915 Accumulated depreciation 46,000 Buildings and equipment C$ 186,000 Cash 45,000 Common stock 69,000 Cost of goods sold 222,000 Depreciation expense 8.800 Dividends, 4/1/20 38,000 Gain on sale of equipment, 6/1/20 6.900 Inventory 98,000 Notes payable-duo in 2023 88,000 Receivables 87,000 Retained earnings, 1/1/20 154,590 Salary expense 42,000 Sales 331,000 Utility expense 10,900 Branch operation 7, 705 Totals C$ 745,405 CS 745,405 Debit Credit Ps 71.900 44,400 Ps 59,000 68,500 3,900 42,000 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 Totals 37,500 37,500 76,000 40,000 10,900 143,000 41,000 Ps 337,800 Ps 337, 800 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 efrenly throughout 2020. The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$7,705 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.22 0.24 0.26 0.27 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $55,950 credit (positive) balance . The subsidiary's common stock was issued in 2007 when the exchange rate was $0.48 - C$1. The subsidiary's December 31, 2019, retained earnings balance was C$154,590, an amount that has been translated into U.S.$67,443 The applicable currency exchange rates for 1 C$ for translation purposes are as follows: January 18 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 tha Sendelbach can prepare consolidated financial statements. Req A Reg 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.) Canadian Dollars Debit Credit 19,413 7,820 10,030 18,495 663 9,240 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 9.750 9,750 19,760 10,800 2,834 37.180 7.705 Main office Remeasurement loss Total 296 81,868 81,868 ULIVUL UNUIIVINVIVIIVI Financial Statements For the Year Ended December 31, 2020 Canadian Dollar Income Statement: U.S. Dollar Sales C$ C$ 0 $ 0.00 Cost of goods sold Gross profit Depreciation expense Salary expense Utility expense Gain on sale of equipment Remeasurement gain x Net income C$ 0 $ 0.00 Statement of Retained Earnings: Retained earnings, 1/1/20 Net income C$ Dividends C$ 0 $ 0.00 Retained earnings, 12/31/20 Retained earnings, 12/31/20 C$ 0 $ 0.00 Balance Sheet: Assets: Cash C$ Receivables Inventory Building and equipment Accumulated depreciation C$ 0 $ 0.00 Total Liabilities and Equities: Accounts payable Notes payable Common stock Retained earnings C$ Total C$ 0 $ 0.00 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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows. Credit c$ 49,915 46,000 es 69,000 Main Operation Canada Debit Accounts payable Accumulated depreciation Buildings and equipment c$ 186,000 Cash 45,000 Common stock Coat of goods sold 222,000 Depreciation expense 8,800 Dividends, 4/1/20 38,000 Gain on sale of equipment, 6/1/20 Inventory 98,000 Notes payable-due in 2023 Receivables 87,000 Retained earnings, 1/1/20 Salary expense 42,000 Sales Utility expense 10,900 Branch operation 2.705 Totals C$ 745, 405 6.900 88.000 154,590 331,000 c$ 745,405 Credit PS 71,900 44,400 Branch Operation-Mexico Debit Accounts payable Accumulated depreciation Building and equipment Ps 59,000 Cash 68,500 Depreciation expense 3,900 Inventory (beginning-income statement) 42,000 Inventory (ending-Income statement) Inventory (ending-balance sheet) 37,500 Purchases 76,000 Receivables 40,000 Salary expense 10,900 Sales Main office Totala Ps 337, 800 37,500 143,000 41,000 Ps 337, 800 Additional Information 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 $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$7,705 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: . Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 C$ 0.22 0.24 0.26 0.27 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $55,950 credit (positive) balance. The subsidiary's common stock was issued in 2007 when the exchange rate was $0.48 - C$1. The subsidiary's December 31, 2019, retained earnings balance was c$154,590, an amount that has been translated into U.S.$67,443 The applicable currency exchange rates for 10$ 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 0.59 0.68 0.67 0.65 a. Romeasure 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