$1)$ On September $30,2014,$First Company paid Second Company $$97,000$ to purchase $$100,000$ of bonds that carry a $8\%$ interest rate and will mature five years from the date of purchase. Interest on the bonds is paid September $30$ and March $31$ of each year. First Company plans to hold the bonds until maturity. The market rate of interest at the time of issue was $8\mathrm{.}75\%.$ Both companies use separate accounts for bond premiums and discounts; and, amortize the premium or discount on bonds using the effective$-$interest method. As of December $31,2014,$ the bonds had a market value of $98.$ Second Company called one$-$half of the bonds on March $31,2015$ at $101.$

a$)$ Prepare all necessary $2014$ and $2015$ journal entries from the point of view of First Company.

b$)$ Prepare all necessary $2014$ and $2015$ journal entries from the point of view of Second Company.

c$)$ Show how the bonds would be presented on the balance sheet of First Company at December $31,2014.$

$2)$ The Farmer Corporation engaged in the following transactions during $2014.$ Farmer uses a perpetual inventory system:

Mar. $31$ Purchased merchandise from an Dutch supplier at a cost of $100,000$ Euros. The exchange rate on this date was $$1\mathrm{.}30$ per Euro.

Apr $.19$ Paid for the merchandise. The exchange rate on this date was $$1\mathrm{.}32$ per Euro.

May $11$ Sold goods to a U$.$S$.$ buyer at a selling price of $$70,000$ U$.$S$.$ dollars. The exchange rate on this date was $$1\mathrm{.}02$ Canadian dollars for each U$.$S$.$ dollar. Ignore the journal entry to record cost of goods sold.

Jun. $15$ Received payment from the U$.$S$.$ buyer for the goods sold on June $10.$ The exchange rate on this date was $$1\mathrm{.}03$ Canadian dollars for each U$.$S$.$ dollar.

a$)$ Prepare the journal entries necessary to record each of the above transactions.

b$)$ During the periods of time covered by the transactions, was the Canadian dollar getting stronger or weaker relative to the Euro and the U$.$S$.$ dollar?