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  3. on april 1, 2020, mendoza company (a u.s.-based co

On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 524.000 euros for one year...

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Accounting

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On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 524.000 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 US 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 3.5. Dollar per Date April 1, 2020 $ 1.10 October 1, 2020 December 31, 2020 March 31, 2021 1.28 Euro 1.20 1.24 Record the borrowal of the foreign loan. Record the first interest payment on the foreign loan. Record the year-end interest accrual on the foreign loan. Record the year-end adjustment to the foreign loan. Record the second interest payment and foreign exchange gain or loss. Record the repayment of the loan and foreign exchange gain or loss

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