Example 2: Foreign Currency Borrowing. Assume that on July 1, 2017, Multicon International borrowed 1 billion Japanese yen () on a one-year note at a per annum interest rate of 5 percent. Interest is payable and the comes due on July 1, 2018. The following exchange rates apply U.S. Dollars per Japanese Yen Spot Rate Date July 1, 2017 December 31, 2017 S0.00921 0.00932 July 1, 2018 0.00937 Make all journal entries for this foreign currency borrowing