On May 1, 2020, St. John’s Brew Supplies Inc. borrowed US$140,000 from its bank. St. John’s year-end is December 31, 2020. Exchange rates were as follows:

Required:

Prepare the required journal entries to record receipt of the loan proceeds and for any adjustments required at year-end. Ignore the interest component.

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May 1, 2020 December 31, 2020 Average rate May 1-December 31, 2020 US$1.00 = C$1.02 US$1.00 = C$1.04 US$1.00 = C$1.03