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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
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
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