Roland Brothers, Inc. purchased equipment from a British firm for £120,000 on April 1, 2008. To finance the purchase of the equipment, the president of the company signed a note for £120,000 with a British bank. The loan is denominated in pounds, matures on March 31, 2009, and bears interest at 12% per annum payable on June 30, September 30, December 31, and March 31. Spot rates for the British pound are as follows:
April 1, 2008......... $1.574
June 30, 2008......... 1.560
September 30, 2008.... 1.526
December 31, 2008..... 1.498
March 31, 2009...... 1.538

Required:
Prepare journal entries to record the purchase of the equipment, the interest payments, the adjustment of the accounts on December 31 (the fiscal year-end), and the payment of the note at maturity.