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ABC Inc. borrowed funds from its bank. Details are as follows. Four year term loan, U.S. $500,000 Funds borrowed 1 January 2019; due 31 December
ABC Inc. borrowed funds from its bank. Details are as follows. Four year term loan, U.S. $500,000 Funds borrowed 1 January 2019; due 31 December 2020 Exchange rates: 1 January 2019 U.S. $1-Cdn. $1.34 31 December 2019 U.S. $1-Cdn. $1.40 31 December 2020 Required: U.S. $1-Cdn. $1.38 Prepare the journal entries as follows to record: A) Receipt of loan proceeds for January 2019. B) The adjustment to spot rate for December 2019. C) The adjustment to spot rate December 2020 D) Repayment of loan December 2020
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