On April 1, 2017, Mendoza Company borrowed 680,000 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:

• 1Record the borrowal of the foreign loan.

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

• 3Record the year end interest accrual on the foreign loan.

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

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

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