HELP ME FIGURE OUT WHY THE VALUES DO NOT BALANCE OUT! Sendelbach Corporation is a U$.$S$.-$based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto, Canada. Although this wholly$-$owned subsidiary 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 $31,2024,$ the subsidiary is preparing financial statements in anticipation of consolidation with the U$.$S$.$ parent corporation. Both ledgers for the subsidiary are as follows:

Sendelbach Corporation is a U$.$S$.-$based organization with operations throughout the world. One of its subsidiaries is headquartered in

Toronto, Canada. Although this wholly$-$owned subsidiary 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 $31,2024,$ the subsidiary is preparing financial statements in anticipation of consolidation with the U$.$S$.$

parent corporation. Both ledgers for the subsidiary are as follows:

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 $2014$ when the currency exchange rate was C$$0\mathrm{.}16=$

Ps $1.$

Purchases of inventory were made evenly throughout the fiscal year.

Beginning inventory was acquired evenly throughout $2023$; ending inventory was acquired evenly throughout $2024.$

The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into

C$$6,300$ on December $31,2024.$

Currency exchange rates for $1$ Ps applicable to the Mexican operation follow:

The December $31,2023,$ consolidated balance sheet reported a cumulative translation adjustment with a $$45,950$ credit $($positive$)$

balance.

The subsidiary's common stock was issued in $2011$ when the exchange rate was $$0\mathrm{.}54=$C$$1.$

The subsidiary's December $31,2023,$ retained earnings balance was C$$144,590,$ an amount that has been translated into

US$$64,703.$

The applicable currency exchange rates for $1$ C$ for translation purposes are as follows:

Required:

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.

Remeasure the Mexican operation's account balances into Canadian dollars. $($Note: Back into the beginning net monetary asset or liability position.$)$

Note: Input all amounts as positive values.

Canadian Dollars Debit Credit Accounts payable $15,184$ Accumulated depreciation $3,664$ Buildings and equipment $7,840$ Cash $16,510$ Depreciation expense $464$ Inventory $($beginning$-$income statement$)6,720$ Inventory $($ending$-$income statement$)8,125$ Inventory $($ending$-$balance sheet$)8,125$ Purchases $16,500$ Receivables $7,800$ Salary expense $2,475$ Sales $33,250$ Main office $6,300$ Remeasurement loss $89$ Total $66,52366,523$

Sales C$ $321,000215,070\mathrm{.}00$ Cost of goods sold $(212,000)(142,040\mathrm{.}00)$ Gross profit C$ $109,00073,030\mathrm{.}00$ Depreciation expense $(7,800)(5,226\mathrm{.}00)$ Salary expense $(32,000)(21,440\mathrm{.}00)$ Utility expense $(9,900)(6,633\mathrm{.}00)$ Gain on sale of equipment $5,9004,012\mathrm{.}00$ Remeasurement loss $(89)(59\mathrm{.}63)$ Net income C$ $65,11143,683\mathrm{.}37$ Statement of Retained Earnings: Retained earnings, $1/1/24$ C$ $144,59064,703\mathrm{.}00$ Net income $65,11143,683\mathrm{.}37$ Dividends $(28,000)(19,320\mathrm{.}00)$ Retained earnings, $12/31/24$ C$ $181,70189,066\mathrm{.}37$ Balance Sheet: Assets: Cash C$ $35,000$ $ $22,750\mathrm{.}00$ Receivables $77,00050,050\mathrm{.}00$ Inventory $88,00057,200\mathrm{.}00$ Buildings and equipment $176,000114,400\mathrm{.}00$ Accumulated depreciation $(36,000)(23,400\mathrm{.}00)$ Total C$ $340,000221,000\mathrm{.}00$ Liabilities and Equities: Accounts payable C$ $27,51017,881\mathrm{.}50$ Notes payable $78,00050,700\mathrm{.}00$ Common stock $59,00031,860\mathrm{.}00$ Retained earnings $181,70189,066\mathrm{.}37$ Cumulative translation adjustment $0$ Total C$ $346,211189,507\mathrm{.}87$