1. Record the borrowal of the foreign loan

2. Record the first interest payment on the foreign loan

3. Record the year and interest accrued on the foreign loan

4. Record the year and adjustment to the foreign loan

5. Record the second interest payment and foreign exchange loss/gain

6. Record the repayment of the loan in foreign exchange laws/gain

Problem 7-28 (LO 7-3) On April 1, 2017, Mendoza 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, 2017 and will make a second interest payment on March 31, 2018 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: $ April 1, 2017 October 1, 2017 December 31, 2017 March 31, 2018 1.10 1.2e 1.24 View transaction list Journal entry worksheet