Question
on September 30th year 1 the Lester company negotiated a two-year-long of 1,000,000 Markkas from a foreign bank at an interest rate of 2% per
on September 30th year 1 the Lester company negotiated a two-year-long of 1,000,000 Markkas from a foreign bank at an interest rate of 2% per annum interest payments are made annually on September 30th and the principal would be repaid on September 30 year 3. Lester company prepares US dollar financial statement and has a December 31st year end. prepare all journals entries related to this foreign currency borrowing assuming the following exchange rates for one markka. prepare all journal entries for Lester company in connection with a foreign currency borrowing what is the effective annual cost of borrowing in dollars in 1 year to year and 3 year
Prepare all journal entries for El Primero in connection with the purchase and payment On September 30, Year 1, the Lester Company negotiated a two-year loan of 1,000,000 markkas from a foreign bank at a percent per annum. Interest payments are made annually on September 30, and the principal will be repaid on September Company prepares U.S.-dollar financial statements and has a December 31 year-end. Prepare all journal entries related to foreign currency borrowing, assuming the following exchange rates for 1 markka: Date September 30, Year 1 December 31, Year 1 September 30, Year 2 December 31, Year 2 September 30, Year 3 U.S. Dollars per Markka $0.20 0.21 0.23 0.24 0.27 Required: Prepare all journal entries for the Lester Company in connection with the foreign currency borrowing. What is the effective annual co borrowing in dollars in Year 1, Year 2, and Year 3? 14. The Budvar Company sells parts to a foreign customer on December 1, Year 1, with payment of 20.,000 crowns to be received on Mar Year 2. Budvar enters into a forward contract on December 1, Year 1, to sell 20,000 crowns on March 1, Year 2 Relevant exchange ra the crown on various dates are as follows Forward Rate (to Spot Rate March 1, Year 2) $1.04 1.10 Date $1.00 December 1, Year 1 1.05 December 31, Year 1 ARA
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