On January 1, 2015, the American Company borrowed 500,000 euros when the euro was worth $2....

On January 1, 2015, the American Company borrowed 500,000 euros when the euro was worth $2. Information about this loan is as follows:

Term of loan is 3 years

Interest payment dates - July 1 and January 1 of each year

Interest rate is 10%

On July 1, 2015, the Euro is worth $2.11

On December 31, 2015 (January 1, 2016), the euro is worth $2.09

On July 1, 2016, the Euro is worth $2.05

On December 31, 2016 (January 1, 2017) the Euro is worth $1.99

On July 1, 2017, the Euro is worth $1.98

On December 31, 2017 (January 1, 2018) the Euro is worth $2.01

REQUIRED: Make all necessary journal entries American Company makes connected with this loan [begin with getting the cash and signing the note]

Expert Solution

ekkarill92 answered 2 years ago

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