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Gemella Lid. manufactures construction equipment for sale throughout Eastern Canada and the Northeastern United States. Its year- end is June 30. The following foreign currency

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Gemella Lid. manufactures construction equipment for sale throughout Eastern Canada and the Northeastern United States. Its year- end is June 30. The following foreign currency transactions occurred during the Year 1 calendar year: 1. On January 10, Gemella agreed to sell equipment to an American customer for US$220,000 for delivery on or before March 31 and received a deposit of US$22,000. The balance is payable on July 31. 2. On March 17, the equipment was delivered to the American customer. 3. On May 1, Gemella purchased 100 acres of land in Syracuse, New York, for US$320,000 as a long-term investment. Fifty percent of the purchase price was paid on May 1. The balance is due on May 1, Year 2, along with interest at the rate of 6%. 4. On June 30, the 100 acres of land had a market value of US$330,000. Gemella reports its long-term investments in land at historica cost and discloses the market value of the land in the notes to its financial statements. 5. On July 31, the balance owing was received from the American customer. The following spot rates exist during the period January to July, Year 1: Spot Rates January 10, Year 1 US$1 = C$1. 60 March 17, Year 1 US$1 = C$1. 61 May 1, Year 1 US$1 = C$1. 63 June 30, Year 1 US$1 = C$1. 67 July 31, Year 1 US$1 = C$1. 69 Exchange rates changed evenly between the dates indicated above. Required: (a) Prepare the journal entries for the transactions stated above including year-end adjusting entries. (Round your answers to 2 decimal places.) Date General Journal Debit Credit January 10, Year 1 Click to select) Click to select) Record receipt of deposit. March 17, Year 1 (Click to select) V (Click to select) V (Click to select) Record the sales. May 1, Year 1 (Click to select) Click to select) Click to select) Record the purchase of land. June 30, Year 1 (Click to select) V Click to select) V Record the exchange gain or loss on Accounts receivable. (Click to select) Click to select) Record the exchange gain or loss on purchase of land. (Click to select) V (Click to select) V Click to select KI Record the interest expense. July 31, Year 1 (Click to select) (Click to select) Record the exchange gain or loss on Accounts receivable. (Click to select) (Click to select) Record the receipt of cash. (b) What value will be disclosed in the notes to the year-end financial statements pertaining to the land purchased in Syracuse? (Omit $ sign in your response.) Value of land disclosed in the notes to the financial statements $ 1

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