On April 1, 2023, Mendoza Company (a U.S.based 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, 2023, and will make a second interest payment on March 31, 2024, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end.

Required:

Prepare all journal entries related to this foreign currency borrowing, assuming the following exchange rates for 1 euro:

Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

Date	U.S. Dollar per Euro
April 1, 2023	$ 1.12
October 1, 2023	1.22
December 31, 2023	1.26
March 31, 2024	1.30