Determine the effective cost of borrowing in dollars

Assignment Help Accounting Basics
Reference no: EM132593267

Question - On September 30, 2018, Dolphin Company negotiated a two-year, 1,000,000 Euro loan from a German bank at an interest rate of 2 percent per year. Dolphin makes interest payments annually on September 30 and will repay the principal on September 30, 2020. Dolphin prepares U.S.-dollar financial statements and has a December 31 year end.

a. Prepare the journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 Euro:

September 30, 2018 $0.115

December 31, 2018 0.120

September 30, 2019 0.135

December 31, 2019 0.140

 September 30, 2020 0.165

b. Determine the effective cost of borrowing in dollars in each of the three years 2018, 2019, and 2020.

Reference no: EM132593267

Questions Cloud

Respect to an aspect of operation : Analyze how Coca-Cola adapts its operations overseas. Subject to information availability
Identify any five such new financial products : Identify any five such new financial products and services which have emerged as a result of new trends and developments in financial sector
What new equipment and software are necessary : The CIO asked you to read Too Much of a Good Thing to think about what resources you will need to get your new information system up and running.
Pieces of supporting evidence to support opinion : As mentioned in the Unit, free trade is a topic that not everyone agrees on. Some people feel like free trade is a perfect economic solution
Determine the effective cost of borrowing in dollars : Dolphin Company negotiated a two-year, 1,000,000 Euro loan from a German bank, Determine the effective cost of borrowing in dollars
Thoughts on ethnic identity development : Respond to at least two of your peers regarding their thoughts on ethnic identity development. Do you agree with their thoughts about the theories in use?
What lessons should be learned from the 737 max 8 crashes : Discuss in 500 words your opinion on what lessons should be learned from the 737 Max 8 crashes. Use at least three sources. Use the Research Databases available
Discuss theory applicable to the selected group : Discuss theory applicable to the selected group and Discuss techniques and best practices applicable to the selected group
Find out online resources for financial information : The Federal Reserve recently lowered interest rates in order to help support and stabilize the economy as the Coronavirus pandemic spread around the globe.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume ngs sold the hydrotherapy tub system for 2100 at the

nicoles getaway spa ngs purchased a hydrotherapy tub system to add to the wellness programs at ngs. the machine was

  The use of fair value to report assets

The use of fair value to report assets

  Eleby company has gathered the following information units

eleby company has gathered the following information. units in beginning work in process 0 units started into

  Who is single retired from his job this year he received a

who is single retired from his job this year. he received a salary of 25000 for the portion of the year that he worked

  What is the process time and inspection time

What is the wait time, what is the process time and what is the inspection time

  What is the profitability of the remaining services

What is the profitability of the remaining services if all services with losses are dropped? Explain fully with spreadsheet illustration and text discussion

  What was the net income or net loss for sawyer architecture

What was the net income or net loss for Sawyer Architecture Services for the month of June? reg Sawyer opened this business on June 1 with a capital investment

  Find the total selling expenses for the month of october

For October, sales revenue is $600,000; sales commissions are 5% of sales; Total selling expenses for the month of October are

  How much overhead was added to all jobs during february

Overhead is charged to jobs at the rate of 14.0% of direct labor cost. How much overhead was added to all jobs during February

  Discuss an analysis of the materials requisition slips

Factory labor costs incurred were $55,900 of which $51,000 pertained to factory wages payable

  Prepare a schedule starting with pretax financial income

Product warranties were estimated to be $50,000 in 2010. Actual repair and labor costs related to the warranties in 2010 were $10,000. The remainder is estimated to be paid evenly in 2011 and 2012.

  Calculate the basic and diluted eps

Net Income: $1,200,000 & tax rate is 40%. Calculate the basic and diluted EPS for 2013. Are there any dilutions, if any, in this equity structure

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd