On January 1, 2010, Edmon Inc. borrowed 5,000,000 Swedish krona (SEK) from a bank in Sweden. The loan has a four-year life and requires an annual interest payment of 4% (payable on the first of the year). The following exchange rates exist for the krona relative to the Canadian dollar:

Date ...........SEK 1 = × C$

January 1, 2010 .......154

December 31, 2010 ......157

Average 2010 ........161

January 1, 2011 .......167

December 31, 2011 .....162

Average 2011 .......159

January 1, 2012 .......153

December 31, 2012 ....149

Average 2012 .......145

January 1, 2013 ......147

December 31, 2013 ....154

Average 2013 ......152

Required

(a) Prepare the journal entries with respect to the loan and interest for each of the years 2010 to 2013.

(b) Indicate the foreign currency gain or loss in each of the years 2010 to 2013.

(c) Calculate the balance in the loan account on the statement of financial position for each of the years 2010 to 2013.