Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: U.S. Dollar per Euro $ 1.14 Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the borrowal of the foreign loan. Note: Enter debits before credits. Date General Journal Debit Credit 04/01/2020 Record entry Clear entry View general journal Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: U.S. Dollar per Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 Euro $ 1.14 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the first interest payment on the foreign loan. Note: Enter debits before credits. Date General Journal Debit Credit 10/01/2020 Record entry Clear entry View general journal Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 U.S. Dollar per Euro $ 1.14 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the year-end interest accrual on the foreign loan. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2020 Record entry Clear entry View general journal Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 U.S. Dollar per Euro $ 1.14 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the year-end adjustment to the foreign loan. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2020 Record entry Clear entry View general journal Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: U.S. Dollar per Euro Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 $ 1.14 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the second interest payment and foreign exchange gain or loss. Note: Enter debits before credits. General Journal Debit Credit Date 03/31/2021 Record entry Clear entry View general journal Problem 9-28 (Algo) (LO 9-3) On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 530,000 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, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro: Date April 1, 2020 October 1, 2020 December 31, 2020 March 31, 2021 U.S. Dollar per Euro $ 1.14 1.24 1.28 1.32 View transaction list Journal entry worksheet Record the repayment of the loan and foreign exchange gain or loss. Note: Enter debits before credits. Date General Journal Debit Credit 03/31/2021 Record entry Clear entry View general journal