Bolten Corp borrowed 130,000 pejos using a note payable. Borrowed from a foreign bank that had an interest rate of 4%/year. Interest payments are made yearly on 10/31/13 and principal will be repaid 10/31/15. Bolten uses a calender reporting year.
Prepare all journal entries (borrowing).
PEJO RATE
10/31/2013 $ 0.60
12/31/2013 $ 0.72
10/31/2014 $ 0.73
12/31/2014 $ 0.75
10/31/2015 $ 0.76