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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: Main OperationCanada Debit Credit Accounts payable C$ 37,530 Accumulated depreciation 40,000 Buildings and equipment C$ 180,000 Cash 39,000 Common stock 63,000 Cost of goods sold 216,000 Depreciation expense 8,200 Dividends, 4/1/20 32,000 Gain on sale of equipment, 6/1/20 6,300 Inventory 92,000 Notes payabledue in 2023 82,000 Receivables 81,000 Retained earnings, 1/1/20 148,590 Salary expense 36,000 Sales 325,000 Utility expense 10,300 Branch operation 7,920 Totals C$ 702,420 C$ 702,420 Branch OperationMexico Debit Credit Accounts payable Ps 63,800 Accumulated depreciation 38,300 Building and equipment Ps 53,000 Cash 65,500 Depreciation expense 3,300 Inventory (beginningincome statement) 36,000 Inventory (endingincome statement) 34,500 Inventory (endingbalance sheet) 34,500 Purchases 70,000 Receivables 34,000 Salary expense 10,300 Sales 137,000 Main office 33,000 Totals Ps 306,600 Ps 306,600 Additional Information The Canadian subsidiarys functional currency is the Canadian dollar, and Sendelbachs 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$0.23 = 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$7,920 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow: Weighted average, 2019 C$ 0.28 January 1, 2020 0.30 Weighted average rate for 2020 0.32 December 31, 2020 0.33 The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $49,950 credit (positive) balance. The subsidiarys common stock was issued in 2007 when the exchange rate was $0.42 = C$1. The subsidiarys December 31, 2019, retained earnings balance was C$148,590, an amount that has been translated into U.S.$71,703. The applicable currency exchange rates for 1 C$ for translation purposes are as follows: January 1, 2020 US$ 0.70 April 1, 2020 0.69 June 1, 2020 0.68 Weighted average rate for 2020 0.67 December 31, 2020 0.65 Remeasure the Mexican operations account balances into Canadian dollars. (Note: Back into the beginning net monetary asset or liability position.) Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for the Canadian subsidiary in its functional currency, Canadian dollars. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial statements.