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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$\backslash$$$).$ 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 $\backslash ($ C $\backslash$$ $0\mathrm{.}22=\backslash )$ 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$\backslash$$$7,195$ 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

$$39,950$ credit $($positive$)$ balance.

The subsidiary's common stock was issued in $2011$ when the exchange rate was $$0\mathrm{.}48=$C$$1.$

The subsidiary's December $31,2023,$ retained earnings balance was C$$138,590,$ an amount that has been

translated into US$$68,723.$

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.

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

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.

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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