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On September 30, 2015, Ericson Company negotiated a two-year, 1,000,000 dudek loan from a foreign bank at an interest rate of 2 percent per year.
On September 30, 2015, Ericson Company negotiated a two-year, 1,000,000 dudek loan from a foreign bank at an interest rate of 2 percent per year. It makes interest payments annually on September 30 and will repay the principal on September 30, 2017. Ericson prepares U.S.-dollar financial statements and has a December 31 year-end September 30, 2015 December 31, 2015 September 30, 2016 December 31, 2016 September 30, 2017 $0.100 0.105 0.120 0.125 0.150 a. Prepare all journal entries related to this foreign currency borrowing assuming the above exchange rates for 1 dudek. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 8 Record the note and conversion of 1 million dudeks into $ at the spot rate Note: Enter debits before credits. Date General Journal Debit Credit 09/30/2015
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