On April 1, 2017, Mendoza Company borrowed 640,000 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 .......................... $1.20 October 1, 2017 ...................... 1.30 December 31, 2017 .................. 1.34 March 31, 2018 ...................... 1.38

Need Help to solve correct answers as follow:

No

Date

General Journal

Debit

Credit

1. Record the borrowal of the foreign loan.

2. Record the first interest payment on the foreign loan.

3.Record the first interest payment on the foreign loan.

4. Record the year end adjustment to the foreign loan.

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

6. Record the repayment of the loan and foreign exchange loss/gain.