On l May 20X9, Nahal imports Limited (NIL) obtained a five-year loan from a major New York bank. The loan is for US\($13,000,000,\) bears interest at 5% per annum (paid annually on the loan anniversary date), and matures on 31 December 20X14. NIL reports in Canadian dollars. At the date the note was issued, the exchange rate was US\($1.00\) = Cdn\($1.04.\) On 31 December 20X9, the exchange rate was US\($1.00\) = Cdn\($1.01,\) and the average exchange rate for the last 8 months of the year was \($1.03\).

Required:
1. Prepare the journal entry to record the loan on 1 May 20X9.
2. What amounts relating to the loan will appear on NIL’s statement of financial position on 31 December 20X9? What amount is included in earnings for 20X9?