On December 1, 2018, Joy Vasek Importers Inc. borrowed US$1,000,000 from its bank. The loan is payable
Question:
On December 1, 2018, Joy Vasek Importers Inc. borrowed US$1,000,000 from its bank. The loan is payable in full on July 1, 2019. Interest is payable each month end at 5% per annum. Pertinent exchange rates in 2018 follow:
Required:
Prepare the required journal entries to record receipt of the loan proceeds; payment of interest on December 31, 2018, and for any adjustments required at year-end.
December 1, 2018 December 31, 2018 Average rate December 1-31, 2018 US$1.00 = C$1.08 US$1.00 = C$1.10 US$1.00 = C$1.09
Step by Step Answer:
On December 1 2018 to record receipt of loan proceeds Debit Cash i...View the full answer
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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