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$) As of December 31, 2017, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows Main Operation-Canada Debit Credit C$ 21,695 Accounts payable Accumulated depreciation Buildings and equipment Cash Common stock Cost of goods sold Depreciation expense Dividends, 4/1/17 Gain on sale of equipment, 6/1/17 Inventory Notes payable-due in 2020 Receivables Retained earnings, 1/1/17 Salary expense Sales Utility expense Branch operation 33,000 C$ 173,000 32,000 56,000 209,000 7,500 25,000 5,600 75,000 141,590 318,000 85,000 74,000 29,000 9,600 6,785 C$ 650,885 C$ 650,885 Totals Branch Operation-Mexico Debit Credit Ps 53,100 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 20,100 Ps 46, 000 62,000 2,600 29,000 31,000 31,000 63,000 27,000 9,600 130,000 36,000 Ps 270,200 Ps 270,200 Totals 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 2007 when the currency exchange rate was C$0.19 Ps 1 Purchases of inventory were made evenly throughout the fiscal year. Beginning inventory was acquired evenly throughout 2016; ending inventory was acquired evenly throughout 2017 throughout 2017. The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into C$6,785 on December 31, 2017. Currency exchange rates for 1 Ps applicable to the Mexican operation follow C$ 0.24 0.26 0.28 0.29 Weighted average, 2016 January 1, 2017 Weighted average rate for 2017 December 31, 2017 The December 31, 2016, consolidated balance sheet reported a cumulative translation adjustment with a $42,950 credit (positive) balance The subsidiary's common stock was issued in 2004 when the exchange rate was $0.51- C$1 The subsidiary's December 31, 2016, retained earnings balance was C$141,590, an amount that has been translated into U.S.$66,803 The applicable currency exchange rates for 1 C$ for translation purposes are as follows January 1, 2017 April 1, 2017 June 1, 2017 Weighted average rate for 2017 December 31, 2017 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 b. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that beginning net monetary asset or liability position.) for the Canadian subsidiary in its functional currency, Canadian dollars. 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. asset or liability position.) (Input all amounts as positive values.) Canadian Dollars Debit Credit 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 Total SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2017 Canadian Dollar U.S. Dollar Income Statement: C$ C$ C$ Statement of Retained Earnings: Retained earnings, 1/1/15 C$ C$ Retained earnings, 12/31/15 Balance Sheet: Retained earnings, 12/31/15 C$ Balance Sheet: Assets: C$ Total C$ Liabilities and Equities: C$ Total C$