21st Century Corporation, USA, manufacturers of agricultural engineering products, decidedto expand its business operations and obtained a two- year note payable loan of 8,000,000Romanian Leus from Alpha Bank, Romania on September 30, 2019. The loan carries aninterest rate of 2 percent per annum. Interest payments are made annually on September 30,and the principal was repaid on September 30, 2021. 21st Century Corporation prepares U.S.-dollar financial statements and has a December 31 year-end. Prepare all journal entries relatedto this foreign currency borrowing from a two transaction perspective, assuming the followingexchange rates for 1 Leu:DateSeptember 30, 2019December 31, 2019September 30, 2020December 31, 2020September 30, 2021U.S. Dollars per Leu$0.200.210.230.240.27Required:Prepare all journal entries for the 21st Century Corporation in connection with the foreigncurrency borrowing and repayment under two transaction perspective. Also show theexplanation for each journal entry.

Here discuss about the details of the Foreign exchange currency transaction which are incurred for…

Required: Prepare all journal entries for the 21st Century Corporation in connection with the foreign currency borrowing and repayment under two transaction perspective. Also show the explanation for each journal entry.

Required: Prepare all journal entries for the 21st Century Corporation in connection with the foreign currency borrowing and repayment under two transaction perspective. Also show the explanation for each journal entry.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...

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