On September 30, 2015, Dolphin Incorporated negotiated a 1,000,000 euro, two-year loan from a German bank. The annual interest on the loan is 2%. Dolphin makes annual interest payments on September 30. Dolphin will repay the loan principal on September 30, 2017. Dolphin prepares December 31 year-end financial statements in U.S. dollars. Step 1: "Prepare the journal entries in Table 1 below for this foreign currency borrowing, based on the following exchange rates for one euro: September 30, 2015 . . . . . . . . . . . . . . . . $0.110 December 31, 2015 . . . . . . . . . . . . . . . . $0.115 September 30, 2016 . . . . . . . . . . . . . . . . $0.130 December 31, 2016 . . . . . . . . . . . . . . . . $0.135 September 30, 2017 . . . . . . . . . . . . . . . . $0.160 " Table 1: Journal Entries Date Account Debit Credit Step 2: Determine the effective cost (in U.S. dollars) of borrowing in 2015, 2016, and 2017. Use Table 2 below as a worksheet. Table 2: Effective Cost of Borrowing 2015 This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank. 2016 This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank. 2017 This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank. This cell intentionally left blank.