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Sendelbach Corporation is a U.S.-based organization with operations throughout the world, One of its subsidiaries is headquanered in Toronto. Although this wholly owned compony operates primarily in Canado, it engagen in some traniractions through a branch in Mexico. Therefore, the subsidiary maintains a ledger denominated in Mexican pesos (Ps) and a general ledger in Canadian dolars (CS). 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 US. dollat. The Conadian 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 c50.23 = 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 - The Main Office account on the Mexican records should be considered an equity account. This balance was remeasured into CS7,350 on December 31, 2020. - Currency exchange rates for 1 Ps applicable to the Mexican operation follow. - The December 31,2019 , consolidated balance sheet reponted a cumulatve uranslation adjustment with a $38,950 credit (positive) balance. - The subsidiary's common stock was issued in 2007 when the exchange rate was $0.47=051 - The subsidiary's December 31, 2019, retained earnings balance was C$137,590, on amount that has been translated into U.S. $69,323. - The applicable currency exchange rates for 1CS for translation purposes are as follows a. Remeasure the Mexican operation's account balances into Canadian dollors. (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 Conadion sabsidlary in its functional currency. Canadian dollars. c. Translate the Canadian dollar functional currency financial statements into U.S. doliars so that Sendelbach can prepare consolidated financial statements

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