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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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.
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