Reference no: EM132614250

On January 1, 2018, Shingli Enterprises Inc. (SEI) borrowed US$100,000 from its bank. The loan was payable in full on January 1, 2020, with interest payable annually at 5% on December 31. SEI's fiscal year end is December 31. SEI prepares its financial statements in Canadian dollars in accordance with IFRS. SEI immediately paid interest on the day it was due. Select exchange rates during the term of the loan are as follows:

January 1, 2018 US$1.00 = C$1.03

December 31, 2018 US$1.00 = C$1.05

January 1, 2019 US$1.00 = C$1.05

December 31, 2019 US$1.00 = C$1.01

January 1, 2020 US$1.00 = C$1.01

Average rate 2018 US$1.00 = C$1.04 Average rate 2019 US$1.00 = C$1.02

Question 1: What are the journal entries as at January 1, 2018, for the year ended December 31, 2018, and as at January 1, 2020. Include the date for each of the journal entries.