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Freedom Corporation, manufacturers of industrial products, decided to expand its business operations and obtained a two- year note payable loan of 8,000,000 Romanian Leus from

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Freedom Corporation, manufacturers of industrial products, decided to expand its business operations and obtained a two- year note payable loan of 8,000,000 Romanian Leus from Beta Bank, Romania on September 30,2018 . The loan carries an interest rate of 2 percent per annum. Interest payments are made annually on September 30 , and the principal was repaid on September 30, 2020. Freedom Corporation prepares U.S.-dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing from a two transaction perspective, assuming the following exchange rates for 1 Leu: Required: Prepare all journal entries for the Freedom Corporation in connection with the foreign currency borrowing and repayment under two transaction perspective. Also show the explanation for each journal entry

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