On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 520,000 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, 2020, and will make a second interest payment on March 31, 2021, 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: Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 U.S. Dollar per Euro $ 1.20 1.30 1.34 1.38 View transaction list View journal entry worksheet No Date General Journal Debit Credit 04/01/2020 624,000 Cash Note payable (euro) 624,000 2 10/01/2020 Interest expense Cash 3 12/31/2020 Interest expense Interest payable (euro) 4 12/31/2020 Foreign exchange gain or loss Note payable (euro) 5 03/31/2021 Interest expense Interest payable (euro) Foreign exchange gain or loss Cash 6 03/31/2021 Note payable (euro) Foreign exchange gain or loss Cash