On November 30, 2021, Tarling Company negotiated a one-year 180,000-franc loan from a foreign bank at an interest rate of 4% per year. Interest payment is made at maturity date on November 30, 2022, and the principal will be repaid on November 30, 2022. Tarling prepares U.S.- dollar financial statements and has a December 31 year-end. Relevant exchange rates are as follows: Date November 30, 2021 December 31, 2021 November 30, 2022 U.S. Dollar per Franc $ 1.10 1.20 1.15 Required: Prepare all journal entries related to this foreign currency borrowing.

On November 30, 2021, Tarling Company negotiated a one-year 180,000-franc loan from a foreign bank at an interest rate of 4% per year. Interest payment is made at maturity date on November 30, 2022, and the principal will be repaid on November 30, 2022. Tarling prepares U.S.- dollar financial statements and has a December 31 year-end. Relevant exchange rates are as follows: Date November 30, 2021 December 31, 2021 November 30, 2022 U.S. Dollar per Franc $ 1.10 1.20 1.15 Required: Prepare all journal entries related to this foreign currency borrowing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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