Bouquet Seeds Inc. (BSI), a Canadian Seed and Garden company with a December 31 year end, sells bulk seeds and other gardening items to a company located in Lancashire, England. Annual sales over the next three years are expected to be consistent at 100,000 (poundssterling/ Great British Pound).Sales are made evenly throughout each year and accounts receivable are collected on December 31 of each year.On January 1, 2019, in order to protect itself against exchange rate risk, BSI borrowed 300,000 from the bank.The interest rate on the loan is 4% and is compounded annually with interest payments being made on December 31 of each year. The debt is to be repaid in three annual installments of 100,000 on December 31 of each year. GBP$ CADJanuary 1, 20191.001.80December 31, 20191.001.86December 31, 20201.001.82December 31, 20211.001.84

Required:I.Prepare all journal entries necessary to record these transactions. You can assume that BSI designated this a hedging relationship and that hedge accounting is used.Clearly date your journal entries and provide a description of what the journal entry is for.