subject
Business, 19.10.2021 02:30 anggar20

On September 30, 2020, Peace Frog International (PFI) (a U. S.-based company) negotiated a two-year, 2,400,000 Chinese yuan loan from a Chinese bank at an interest rate of 4 percent per year. The company makes interest payments annually on September 30 and will repay the principal on September 30, 2022. PFI prepares U. S. dollar financial statements and has a December 31 year-end. Relevant exchange rates are as follows: DateU. S. Dollar per Chinese Yuan (CNY)
September 30, 2020$0.170
December 31, 2020 0.175
September 30, 2021 0.190
December 31, 2021 0.195
September 30, 2022 0.220
a. Prepare all journal entries related to this foreign currency borrowing.
b. Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in U. S. dollars on the loan in each of the three years 2020, 2021, and 2022.

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 00:30, 4300404440
Which statement is true about the elements of the interface of a presentation program? a. the status bar appears at the top of the page and displays options to style your slides. b. the tool bar displays the thumbnails of your presentation slides in the order they will appear in the presentation. c. rulers indicate the margins, tabs, and indents in a presentation slide. d. the document area provides a list of commands to create, format, and edit presentations.
Answers: 3
image
Business, 22.06.2019 02:30, teresaduggan1433
On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.
Answers: 3
image
Business, 22.06.2019 19:00, EllaSue
Lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal.
Answers: 3
image
Business, 22.06.2019 20:20, misslux
An economic theory that calls for workers to take control of factories is .
Answers: 3
You know the right answer?
On September 30, 2020, Peace Frog International (PFI) (a U. S.-based company) negotiated a two-year,...

Questions in other subjects:

Konu
Biology, 05.07.2019 09:30