Northern Lights Financial Ltd$.($NLF$)$ a Canadian entity whose functional currency is the Canadian dollar made a loan of $$40,000,000$ in

U$.$S$.$ funds on January $1,$ Year $1,$ to a green energy company, Algonquin Power, at an annual interest rate of $12\%.$ The loan is due on

December $31,$ Year $4,$ and interest is paid annually on December $31.$ The exchange rates for one Canadian dollar over the life of the

loan were as follows:

Exchange rates changed evenly throughout the year.

Required:

$($a$)$ Prepare journal entries for NLF for Year $1.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the

first account field. Round your answers to the nearest whole dollar amount.$)$

Journal entry worksheet

$1$

$2$

$3$

Record the $$40,000,000$ loan given to a green energy company on January $1,$

Year $1$ while the exchange rate is US $$0\mathrm{.}86.$