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:

$\backslash$table$[[$Main Operation$-$Canada$],[,$Debit,Credit$],[$Accounts payable,,C$$27,510],[$Accumulated depreciation,,$36,000],[$Buildings and equipment,C$$176,000,],[$Cash$,35,000,],[$Common stock,,$59,000],[$Cost of goods sold,$212,000,],[$Depreciation expense,$7,800,],[$Dividends$,4/1/24,28,000,],[$Gain on sale of equipment, $6/1/24,,5,900],[$Inventory$,88,000,],[$Notes payable$-$due in $2027,,78,000],[$Receivables$,77,000,],[$Retained earnings, $1/1/24,,144,590],[$Salary expense,$32,000,],[$Sales$,,321,000],[$Utility expense,$9,900,],[$Branch operation,$6,300,],[$Totals$,$C$$672,000,$C$$672,000],[$Branch Operation$-$Mexico,,$],[,$Debit,Credit$],[$Accounts payable,,Ps $58,400],[$Accumulated depreciation,,$22,900],[$Building and equipment,Ps $49,000,],[$Cash$,63,500,],[$Depreciation expense,$2,900,],[$Inventory $($beginning$-$income statement$),32,000,],[$Inventory $($ending$-$income statement$),,32,500],[$Inventory $($ending$-$balance sheet$),32,500,],[$Purchases$,66,000,],[$Receivables$,30,000,],[$Salary expense,$9,900,],[$Sales$,,133,000],[$Main office,,$39,000],[$Totals$,$Ps $285,800,$Ps $285,800]]$ Additional Intormation

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 $1C$$ 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. Complete this question by entering your answers in the tabs below.

Req B and C

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.

$\backslash$table$[[,$Canadian Dollars,$],[$Debit$,$Credit$],[$Accounts payable,,$],[$Accumulated depreciation,,$],[$Buildings 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$,,]]$ ReqA

Req B and C

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.

Note: Round U$.$S$.$ Dollar values to $2$ decimal places. Amounts to be deducted and losses should be indicated with a minus sign.

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SENDELBACH CORPORATION

Financial Statements

$\backslash$table$[[,,\backslash$table$[[$Canadian$],[$Dollar$]],$U$.$S$.$ Dollar$],[$Income Statement:$],[$r$,$C$$,?,],[$Y$],[$F$,$C$$,,],[$F$],[,,,],[],[$F$],[7],[],[$Y$,$C$$,,],[$Statement of Retained Earnings:$],[$Retained earnings, $1/1/24,$C$$,,],[$F$],[$F$],[$Retained earn