View previous attempt 1 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$). As of December 31, 2020, the subsidiary is preparing financial statements in anticipation of consolidation with the U.S. parent corporation. Both ledgers for the subsidiary are as follows: 2.84 points Credit C$ 13,860 29,000 eBook 52,000 Print Main Operation-Canada Debit Accounts payable Accumulated depreciation Buildings and equipment C$ 169,000 Cash 28,000 Common Atock Cost of goods sold 205,000 Depreciation expense 7,100 Dividends, 4/1/20 21,000 Gain on sale of equipment, 6/1/20 Inventory 81,000 Notes payable due in 2023 Receivables 70,000 Retained carnings, 1/1/20 Salary expense 25,000 Sales Utility expense 9,200 Branch operation 7,350 Totala C$ 622,650 5,200 71,000 Roterences 137,590 314,000 CS 622,650 Credit Ps 56,200 19,200 Branch Operation-kexico Dabit Noounts payable Accumulated depreciation Building and equipment PS 42,000 Cash 60,000 Depreciation expensa 2,200 Inventory (beginning-income statement) 25,000 Inventory (ending-income statement.) Inventory (ending balance sheet) 29,000 Purchases 70,000 Receivables 23,000 Salary expease 9,200 Sales Main office Total: Ps 260,400 29,000 126,000 32,000 PS 260,400 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$0.23 - 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. View previc 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$7,350 on December 31, 2020. Currency exchange rates for 1 Ps applicable to the Mexican operation follow 2.84 points Weighted average, 2019 January 1, 2020 Weighted average rate for 2020 December 31, 2020 CS 0.28 0.30 0.32 0.33 Book Print The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $38,950 credit (positive) balance . The subsidiary's common stock was issued in 2007 when the exchange rate was $0.47 = C$1. The subsidiary's December 31, 2019, retained earnings balance was C$137,590, an amount that has been translated into U.S.$69,323 The applicable currency exchange rates for 1 C$ for translation purposes are as follows: References US$ 0.70 January 1, 2020 Aprili, 2020 June 1, 2020 Weighted average rate for 2020 December 31, 2020 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 that Sendelbach can prepare consolidated financial statements Complete this question by entering your answers in the tabs below. 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 13,860 Accounts payable Accumulated depreciation Building and equipment Cash Depreciation expense Inventory (beginningincome statement) Inventory (endingincome statement) Inventory (ending-balance sheet) Purchases Receivables Salary expense Sales Main office Total 13,860 0 Req A Req B and C b. Prepare financial statements (income statement, statement of retained earnings, and balance sheet) for th subsidiary in its functional currency, Canadian dollars. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach consolidated financial statements. (Round U.S. Dollar values to 2 decimal places. Amounts to be deducted and losses should be indicated with a SENDELBACH CORPORATION Financial Statements For the Year Ended December 31, 2020 Canadian Dollar U.S. Dollar Income Statement: C$ C$ 0 $ 0.00 C$ 0 $ 0.00 Statement of Retained Earnings: 1 FUI UIC ICA LUCU CUCINCI LUCU Canadian Dollar Income Statement: U.S. Dollar C$1 2.84 points C$ 0 $ 0.00 eBook Print c$ 0 $ 0.00 References Statement of Retained Earnings Retained earnings, 1/1/20 cs Retained earnings, 12/31/20 c$ 0 $ 0.00 Balance Sheet: Assets c$ Total c$ 0 $ 0.00 Liabilities and Equities: cs Total 0001