On 1/1/2014 ACME Company purchased a 1,000,000 Pound Sterling two year CD for $1,500,000. This 12% CD pays interest on June 30 and December 31.

REQUIRED:

Make the journal entry ACME makes on 1/1/2014

Make the journal entry ACME makes on 6/30/2014 when the Pound Sterling is $1.45

Make the journal entries needed on December 31 when the Pound Sterling is $1.55

For the interest received

To revalue the CD

Make the journal entry ACME makes on 6/30/15 when the Pound Sterling is $1.67

Make the journal entries needed on December 31 when the Pound Sterling is $1.46 for

The interest received

The collection of the note.