Reference no: EM133164648

Question - Hamilton Corporation (HC) manufactures building equipment and sale throughout Canada and USA. Its year-end is June 30. The following foreign currency transactions occurred during the Year 1 calendar year:

i. On January 10, Hamilton agreed to sell equipment to an American customer for US$200,000 for delivery on or before March 31 and received a deposit of US$100,000. The balance is payable on July 31.

ii. On March 17, the equipment was delivered to the American customer.

iii. On May 1, Hamilton purchased 100 acres of land in New York, for US$400,000 as a long-term investment. Fifty percent of the purchase price was paid on May 1, Year 2, along with interest at the rate 6%.

iv. On June 30, the 100 acres of land had a market value of US$610,000. Hamilton reports its long-term investments in land at historical cost and discloses the market value of the land in the notes to its financial statements.

v. 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:

January 10, Year 1US$1 = C$1.16

March 17, Year 1US$1 = C$1.17

May 1, Year 1US$1 = C$1.19

June 30, Year 1US$1 = C$1.23

July 31, Year 1US$1 = C$1.25

Exchange rates changed evenly between the dates indicated above.

Required - Prepare journal entries for the transactions stated above including year-end adjusting entries.