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On April 1, 2020. Mendoza Company (a U.S.-based company) borrowed 524.000 euros for one year at an interest rate of 5 percent per annum. Mendoza

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On April 1, 2020. Mendoza Company (a U.S.-based company) borrowed 524.000 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 US 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 U.S. Dollar per Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 Euro 51.10 1.20 1.24 1.28 1 N 3 5 6 Record the year-end interest accrual on the foreign loan.

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