90.2K

Verified Solution

Link Copied!

i dont know how to do the financial statemengs.

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: 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 ocquired in 2010 when the currency exchange rate was CS0.20 Pes 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 $7,680 on December 31,2020. - Currency exchange rates for 1 Ps applicable to the Mexican operation follow: - The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $52,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.45=C$1. - The subsidiary's December 31, 2019, retained earnings balance was C $151,590, an amount that has been translated into U.S. $69.663. - The opplicable currency exchange rates for 1C$ for translation purposes are as follows: a. Remeasure the Mexican operation's account balances into Canodian 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, Conadian doliars. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial stotements. - The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $52,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.45=C$1. - The subsidiary's December 31, 2019, retained earnings balance was C $151,590, an amount that has been translated into U.S. $69.663. - The opplicable currency exchange rates for 1C$ for translation purposes are as follows: a. Remeasure the Mexican operation's account balances into Canodian 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, Conadian doliars. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial stotements. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ For the Year Ended December 31, 2020} & \\ \hline \multirow[b]{2}{*}{ Income Statement: } & \multicolumn{3}{|c|}{\begin{tabular}{c} Canadian \\ Dollar \end{tabular}} & & U.S. Dollar & \\ \hline & & & & & & \\ \hline Sales & 0 & cs & & & & \\ \hline Cost of goods sold & 0 & & & & & \\ \hline Gross proft & 0 & cs & & 03 & 0.00 & \\ \hline Depreciation expense & 0 & & & & & \\ \hline Salary expense & 0 & & & & & \\ \hline Utility expense & & & & & & \\ \hline Gain on sale of equipment & 0 & & & & & \\ \hline Remeasurement loss & & & 5 & & (62)0 & \\ \hline Net income & & & () & s & (62) & 0.00 \\ \hline Statement of Retained Earnin & & & & & & \\ \hline Retained earnings, 1/1/20 & & & & cs & 4 & \\ \hline Net income & & & 2 & & & \\ \hline Dividends & & & 3 & & & \\ \hline Retained earnings, 12/31/20 & & & & is & 0 & 0.00 \\ \hline Balance Sheet: & & & & & & \\ \hline Assets: & & & & & & \\ \hline Cash & & & 3 & es & & \\ \hline Receivables & & & & & & \\ \hline Inventory & & & ( & & & \\ \hline Building and equipment & & & 8 & & & \\ \hline Accumulated depreciation & & & 2 & & & \\ \hline \end{tabular} Req A Req B and 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: 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 ocquired in 2010 when the currency exchange rate was CS0.20 Pes 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 $7,680 on December 31,2020. - Currency exchange rates for 1 Ps applicable to the Mexican operation follow: - The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $52,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.45=C$1. - The subsidiary's December 31, 2019, retained earnings balance was C $151,590, an amount that has been translated into U.S. $69.663. - The opplicable currency exchange rates for 1C$ for translation purposes are as follows: a. Remeasure the Mexican operation's account balances into Canodian 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, Conadian doliars. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial stotements. - The December 31, 2019, consolidated balance sheet reported a cumulative translation adjustment with a $52,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.45=C$1. - The subsidiary's December 31, 2019, retained earnings balance was C $151,590, an amount that has been translated into U.S. $69.663. - The opplicable currency exchange rates for 1C$ for translation purposes are as follows: a. Remeasure the Mexican operation's account balances into Canodian 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, Conadian doliars. c. Translate the Canadian dollar functional currency financial statements into U.S. dollars so that Sendelbach can prepare consolidated financial stotements. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ For the Year Ended December 31, 2020} & \\ \hline \multirow[b]{2}{*}{ Income Statement: } & \multicolumn{3}{|c|}{\begin{tabular}{c} Canadian \\ Dollar \end{tabular}} & & U.S. Dollar & \\ \hline & & & & & & \\ \hline Sales & 0 & cs & & & & \\ \hline Cost of goods sold & 0 & & & & & \\ \hline Gross proft & 0 & cs & & 03 & 0.00 & \\ \hline Depreciation expense & 0 & & & & & \\ \hline Salary expense & 0 & & & & & \\ \hline Utility expense & & & & & & \\ \hline Gain on sale of equipment & 0 & & & & & \\ \hline Remeasurement loss & & & 5 & & (62)0 & \\ \hline Net income & & & () & s & (62) & 0.00 \\ \hline Statement of Retained Earnin & & & & & & \\ \hline Retained earnings, 1/1/20 & & & & cs & 4 & \\ \hline Net income & & & 2 & & & \\ \hline Dividends & & & 3 & & & \\ \hline Retained earnings, 12/31/20 & & & & is & 0 & 0.00 \\ \hline Balance Sheet: & & & & & & \\ \hline Assets: & & & & & & \\ \hline Cash & & & 3 & es & & \\ \hline Receivables & & & & & & \\ \hline Inventory & & & ( & & & \\ \hline Building and equipment & & & 8 & & & \\ \hline Accumulated depreciation & & & 2 & & & \\ \hline \end{tabular} Req A Req B and

Answer & Explanation Solved by verified expert

See Answer