Borrowing Funds Denominated in Foreign Currency Example Deniz Ltd. borrowed 300.000 USD of loan for 9 months from the Bank A on 30.06.2016. The interest rate is 6% per annum, and the company would pay the principal in three installments with the interest calculated quarterly on 30.09.2016, 31.12.2016 and 31.03.2017 according to the agreement. The spot foreign exchange rates for $/ were 3,20, 3,35, 3,50 and 3,60 on the dates 30 June, 30 Sep, 31 Dec 2016 and 31 March 2017, respectively. Instructions: Calculate the interests, foreign exchange gains/losses and the principal amount paid in TL for each installment. Make the journal entries including year-end adjusting entries if required