Franc loan from a foreign bank at an interest rate

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Reference no: EM13747322

On October 31, 2012, Darling Company negotiated a two-year 100,000 franc loan from a foreign bank at an interest rate of 3 percent per year. Interest payments are made annually on October 31, and the principal will be repaid on October 31, 2014. Darling 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:

Franc Rate

October 31, 2012 $.50

December 31, 2012 $.52

October 31, 2012 $.60

December 31, 2013 $.62

October 31, 2014 $.75

Reference no: EM13747322

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Franc loan from a foreign bank at an interest rate : On October 31, 2012, Darling Company negotiated a two-year 100,000 franc loan from a foreign bank at an interest rate of 3 percent per year. Interest payments are made annually on October 31, and the principal will be repaid on October 31, 2014. Darl..

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