ABC Inc. borrowed funds from its bank. Details are as

ABC Inc. borrowed funds from its bank. Details are as follows.

Four year term loan, U.S. $500,000

Funds borrowed 1 January 2016; due 31 December 2019

Exchange rates:

1 January 2016

U.S. $1 = Cdn. $1.34

31 December 2016

U.S. $1 = Cdn. $1.40

31 December 2017

U.S. $1 = Cdn. $1.41

31 December 2018

U.S. $1 = Cdn. $.136

31 December 2019

U.S. $1 = Cdn. $1.38

Required:

Prepare the journal entries as follows to record:

(A) Receipt of loan proceeds for January 2016.

(B) The adjustment to spot rate for December 2016.

(C) The adjustment to spot rate December 2017

(D) The adjustment to spot rate December 2018

(E) The adjustment to spot rate December 2019

(F) Repayment of loan December 2019

(G )Based on the above information calculate the total accounting recognition of loss.

 

Leave a Comment

Your email address will not be published. Required fields are marked *

GradeEssays.com
We are GradeEssays.com, the best college essay writing service. We offer educational and research assistance to assist our customers in managing their academic work. At GradeEssays.com, we promise quality and 100% original essays written from scratch.
Contact Us

Enjoy 24/7 customer support for any queries or concerns you have.

Phone: +1 213 3772458

Email: support@gradeessays.com

© 2020 -2025 GradeEssays.com. All rights reserved.

WE HAVE A GIFT FOR YOU!

15% OFF 🎁

Get 15% OFF on your order with us

Scroll to Top