On January 1, 2014, GRL Inc -Prepare GRL's Journal Entries for Each of 2014, 2015 and $500,000

Essay

On January 1, 2014, GRL Inc. purchased, in U.S. Funds $500,000 of Bonds of the OBY Company. On that date, the Bonds were trading at par. These Bonds pay 10% interest annually each December 31. The Bonds mature on December 31, 2016. The following exchange rates were applicable between 2014 and 2016. The rates indicate the cost (in Canadian dollars) of purchasing 1 U.S. dollar:
$$\begin{array} { | l | l | } \hline \text { January } 1,2014 & \text { CDN } \$ 1.4666 \\\hline \text { Average rate for } 2014 & \text { CDN } \$ 1.4570 \\\hline \text { December } 31,2014 & \text { CDN } \$ 1.4726 \\\hline \text { Auerage rate for } 2015 & \text { CDN } \$ 1.4600 \\\hline \text { December } 31,2015 & \text { CDN } \$ 1.4426 \\\hline \text { Average rate for } 2016 & \text { CDN } \$ 1.4500 \\\hline \text { December } 31,2016 & \text { CDN } \$ 1.4575 \\\hline\end{array}$$
-Prepare GRL's journal entries for each of 2014, 2015 and 2016.