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On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 520,000 euros for one year...

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On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 520,000 euros for one year at an interest rate of 5 percent per annum. Mendoza must make its first interest payment on the loan on October 1, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: 1 Record the borrowal of the foreign loan. 2 Record the first interest payment on the foreign loan. 3 Record the year-end interest accrual on the foreign loan. 4 Record the year-end adjustment to the foreign loan. 5 Record the second interest payment and foreign Credit exchange gain or loss. 6 Record the repayment of the loan and foreign exchange gain or loss

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