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On September 30, 2017, Ericson Company negotiated a two-year, 3,100,000 dudek loan from a foreign bank at an interest rate of 4 percent per year.

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On September 30, 2017, Ericson Company negotiated a two-year, 3,100,000 dudek loan from a foreign bank at an interest rate of 4 percent per year. It makes interest payments annually on September 30 and will repay the principal on September 30, 2019. Ericson prepares U.S.-dollar financial statements and has a December 31 year-end. a. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 dudek: September 30, 2017 December 31, 2017 $ 0.200 0.205 0.220 0.225 0.250 December 31, 2018 September 30, 2019 09/30/2017 Cash Note payable (dudek) 12/31/2017 Interest expense Interest payable (dudek) 12/31/2017 Foreign exchange loss Note payable (dudek) 09/30/2018 Interest expense Interest payable (dudek) Foreign exchange loss Cash 12/31/2018 Interest expense Interest payable (dudek) 12/31/2018 Foreign exchange loss Note payable (dudek) 09/30/2019 Interest expense Interest payable (dudek) Foreign exchange loss Cash 09/30/2019 Note payable (dudek) Foreign exchange loss Cash

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