Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 May 20X9, All Man Imports Ltd. (AML) obtained a five-year loan from a major New York bank. The loan is for US$25,000,000, bears

image text in transcribed
image text in transcribed
On 1 May 20X9, All Man Imports Ltd. (AML) obtained a five-year loan from a major New York bank. The loan is for US$25,000,000, bears interest of 8% per annum (paid annually on the loan anniversary date), and matures on 31 December 2014 AML reports in Canadian dollars. At the date the note was issued the exchange rate was US$100 - Can$0.93. On 31 December 20X9, the exchange rate was US$1.00 - Cdn$0.89, and the average exchange rate for the last 8 months of the year was US$1.00 - Can$0.92. Required: 1. Prepare the journal entry to record the loan on 1 May 20X9. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet > Record the loan granted. Note: Enter debits before credits Debit Credit Transaction General Journal 1 Cash Long term note payable Record entry Clear entry View general Journal 2 8. What amounts relating to the loan will appear on AML's statement of financial position on 31 December 20x9? (Do not round intermediate calculations.) Statement of Financial Position Long term note payable Accrued interest payable 2-6. What amounts are included in comings for 20X97 (Do not round intermediate calculations) Statement of comprehensive Income Interest expense Foreign exchange gain

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security And Auditing Of Smart Devices

Authors: Sajay Rai, Philip Chukwuma, Richard Cozart

1st Edition

0367567997, 978-0367567996

More Books

Students also viewed these Accounting questions