Reference no: EM132574178
Question - On April 01, 2016, ABC Inc., a Canadian Corporation, obtained a 3-year loan in US$ funds from a bank in Boston (USA). Details are as follows:
- Four year term loan, U.S. $500,000
- Interest is 6% payable Dec 31 every year
- ABC Inc.'s fiscal-end is on December 31.
Exchange rates:
1 January 20X6 U.S. $1 = Cdn. $1.35
31 December 20X6 U.S. $1 = Cdn. $1.40
31 December 20X7 U.S. $1 = Cdn. $1.42
31 December 20X8 U.S. $1 = Cdn. $.136
31 December 20X9 U.S. $1 = Cdn. $1.39
Note: The average interest rate for the period from April 01, 2016 to December 31, 2016 was US$1 = Cdn$1.38
Required -
a) Prepare the journal entry to record the loan on Jan 01, 2016.
b) Prepare entries to record the adjustment to spot rate for December 2016.
c) Prepare entries to record the adjustment to spot rate for December 2017.
d) What amounts relating this loan will appear on the Statement of Financial Position on December 31, 2016?
e) What amounts will be included in ABC's Statement of Comprehensive Income for December 31, 2016?
|
What minimum piv rating must the diodes have
: Show the voltage waveforms across the secondary winding and across RL when input waveform is applied to the primary winding in the below circuit.
|
|
How much money do make from the youtube video
: Does knowing this information about influencers a company make a decision on which influencer to sponsor or have promote their products?
|
|
What is the mass of the copper
: Specific Heat. A piece of copper at 300oC is dropped into 1kg of water at 20oC, if the equilibrium temperature is 250C, what is the mass of the copper.
|
|
Were the bonds issued at a premium or a discount
: On September 1, 2019, RC Ltd. sold $10,000, 6% (payable semi-annually each March 1 and September 1), Were the bonds issued at a premium or a discount
|
|
Prepare the journal entry to record the loan on Jan
: The average interest rate for the period from April 01, 2016 to December 31, 2016 was US$1 = Cdn$1.38. Prepare the journal entry to record the loan on Jan
|
|
What is the balance in the warranty liability account
: During 2018, Lion Parts Corp. introduced a new product with a 2-year warranty. What is the balance in the warranty liability account
|
|
What does society think about the man action
: His wife, 78, had been seriously ill for the last 15 years. The cost of her medications had become so expensive that they could no longer afford it.
|
|
What is the balance in the warranty liability account
: During 2018, Lion Parts Corp. introduced a new product with a 2-year warranty. What is the balance in the warranty liability account
|
|
Analyze the person action citing one of the ethical theories
: Analyze the person's actions citing one of the ethical theories or approaches ...were they morally and ethically justified or not? Cite the theory/approach.
|