Question
In: Accounting
On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 504,000 euros for one year at...
On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 504,000 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 | U.S. Dollar per Euro | ||
| April 1, 2020 | $ | 1.16 | |
| October 1, 2020 | 1.26 | ||
| December 31, 2020 | 1.30 | ||
| March 31, 2021 | 1.34 | ||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 514,000 euros for one year at...
On April 1, 2020, Mendoza Company (a U.S.-based company)
borrowed 514,000 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...
On April 1, 2017, Mendoza Company borrowed 680,000 euros for one year at an interest rate...
On April 1, 2017, Mendoza Company borrowed 680,000 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, 2017 and will
make a second interest payment on March 31, 2018 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:...
On April 1, 2017, Mendoza Company borrowed 460,000 euros for one year at an interest rate...
On April 1, 2017, Mendoza Company borrowed 460,000 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, 2017 and will
make a second interest payment on March 31, 2018 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:...
On April 1, 2017, Mendoza Company borrowed 580,000 euros for one year at an interest rate...
On April 1, 2017, Mendoza Company borrowed 580,000 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, 2017 and will
make a second interest payment on March 31, 2018 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:...
1. Answer the following questions: A) On April 30, 2020, Connie borrowed P 185,000 at 10%...
1. Answer the following questions:
A) On April 30, 2020, Connie borrowed P 185,000 at 10%
compounded monthly. The loan is to be paid out in 90 equal monthly
payments with the first payment on May 31, 2020. What is the size
of each monthly payment?
B) Cocoy wants to accumulate P 230,000 in 9.5 years. Equal
deposits are made at the end of each quarter in an account that
pays 15% compounded quarterly. What is the size of each...
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with...
Icebreaker Company (a U.S.-based company) sells parts to a
foreign customer on December 1, 2020, with payment of 12,000 dinars
to be received on March 1, 2021. Icebreaker enters into a forward
contract on December 1, 2020, to sell 12,000 dinars on March 1,
2021. The forward points on the forward contract are excluded in
assessing hedge effectiveness and are amortized to net income using
a straight-line method on a monthly basis. Relevant exchange rates
for the dinar on various...
On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in...
On October 1, 2020, Mertag Company (a U.S.-based company)
receives an order from a customer in Poland to deliver goods on
January 31, 2021, for a price of 1,028,000 Polish zlotys (PLN).
Mertag enters into a forward contract on October 1, 2020, to sell
PLN 1,028,000 in four months (on January 31, 2021). U.S.
dollar–Polish zloty exchange rates are as follows:
Date
Spot Rate
Forward Rate
(to January 31, 2021)
October 1, 2020
$
0.28
$
0.32
December 31, 2020...
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with...
Icebreaker Company (a U.S.-based company) sells parts to a
foreign customer on December 1, 2020, with payment of 34,000 dinars
to be received on March 1, 2021. Icebreaker enters into a forward
contract on December 1, 2020, to sell 34,000 dinars on March 1,
2021. The forward points on the forward contract are excluded in
assessing hedge effectiveness and are amortized to net income using
a straight-line method on a monthly basis. Relevant exchange rates
for the dinar on various...
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with...
Icebreaker Company (a U.S.-based company) sells parts to a
foreign customer on December 1, 2020, with payment of 16,000 dinars
to be received on March 1, 2021. Icebreaker enters into a forward
contract on December 1, 2020, to sell 16,000 dinars on March 1,
2021. The forward points on the forward contract are excluded in
assessing hedge effectiveness and are amortized to net income using
a straight-line method on a monthly basis. Relevant exchange rates
for the dinar on various...
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain how biology, culture, and their interaction shape sex differences.
- Write a program that computes the tax and tip on a restaurant bill for a patron...
- clear all close all % %*******Parameter Settings******** %********************************* Fs=8192; %Sampling frequency (MATLAB's default) Ts=1/Fs; %Sampling time...
- Name a business that you believe has experienced declining costs attributable to computerization. Were variable costs...
- With C++, 1. Assume we use two linked lists that represent Set A and Set B...
- A beam of light shines on an equilateral glass prism at an angle of 45∘ to...
- This is an intro to python question. #Write a function called search_for_string() that takes two #parameters,...
ADVERTISEMENT