Question
In: Accounting
On 1/04/2019, AUS Ltd enters into a binding agreement with a Canadian company to construct an...
On 1/04/2019, AUS Ltd enters into a binding agreement with a Canadian company to construct an item of machinery that manufactures spoons. The cost of the machinery is $400,000 Canadian Dollars. The construction of the machinery is completed on 1/06/2020 and shipped FOB Canada on that date. The debt is unpaid at 30 June 2020, which is also AUS Ltd’s end of reporting period. The exchange rates at the relevant dates are: • 01/04/2019 A$1.00 = C$1.10 • 30/06/2019 A$1.00 = C$1.05 • 01/06/2020 A$1.00 = C$1.02 • 30/06/2020 A$1.00 = C$1.00 Required: Provide the required journal entries for the above transactions. (7 marks, word limit: n/a) Please provide unique answer than others.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company,...
On 1 March 2020 Holmes Ltd enters into a binding agreement with
a New Zealand company, which requires the New Zealand Company to
construct an item of machinery for Holmes Ltd. The cost of the
machinery is NZ$750,000. The machinery is completed on 1 June 2021
and shipped FOB Auckland on that date. The debt is unpaid at 30
June 2020, which is also Holmes Ltd’s reporting date.
The exchange rates at the relevant dates are: 1 March 2011
A$1.00...
On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company,...
On 1 March 2020 Holmes Ltd enters into a binding agreement with
a New Zealand company, which requires the New Zealand Company to
construct an item of machinery for Holmes Ltd. The cost of the
machinery is NZ$750,000. The machinery is completed on 1 June 2021
and shipped FOB Auckland on that date. The debt is unpaid at 30
June 2020, which is also Holmes Ltd’s reporting date. The exchange
rates at the relevant dates are:
1 March 2020 A$1.00...
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