Question
In: Accounting
Translation of purchase of inventories on credit terms Stranded Ltd is an Australian company that purchases...
Translation of purchase of inventories on credit terms
Stranded Ltd is an Australian company that purchases inventories from Hammers plc,
which is an English company. The following information is relevant to a recent
acquisition of inventories for £300 000 pursuant to a contract with terms including FOB
shipping.
|
Date |
Event |
Exchange rate |
||
|
11 May 2017 |
Inventories shipped |
A$1 = £0.41 |
||
|
22 June 2017 |
Inventories delivered |
A$1 = £0.42 |
||
|
30 June 2017 |
End of reporting period |
A$1 = £0.43 |
||
|
31 July 2017 |
Cash payment of £300 000 to Hammers plc |
A$1 = £0.39 |
Required
In accordance with AASB 121/IAS 21, prepare all of the entries of Stranded Ltd that relate to the foreign currency purchase of inventories. How would your answer change if the inventories acquired had a net realisable value of £270 000 at 30 June 2017?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Question) Mikakos Ltd is an Australian company that purchases inventories (PPE) from Shultz AG, which is...
Question)
Mikakos Ltd is an Australian company that purchases inventories
(PPE) from Shultz AG, which is a German company. The most recent
acquisition involved the acquisition of inventories for 150,000
pounds with contract terms including FOB shipping point. Credit
dates are:
Date
Event
Exchange Rate
1 May
2020
Inventories
Ordered
A$1= 0.55 pounds
11 May
2020
Inventories
shipped
A$1= 0.58 pounds
30 June 2020 End of reporting
period A$1= 0.60 pounds
31 July
2020
Payment
A$1= 0.64 pounds
Required:...
A BC Ltd, an Australian company, purchases 240 000 GBP of inventory from DEF company, a...
A BC Ltd, an Australian company, purchases 240 000 GBP of
inventory from DEF company, a listed British company. The inventory
was shipped FOB shipping on 11 May 2016, and delivered on 30 May
2016. Payment was made on 30 July 2016.
Required:
Record the journal entries for the relevant transactions if the
exchange rates are as follows
(rounded to the nearest whole AUD, narrations are not
11 May 2016 1 AUD=0.58 GBP
30 May 2016 1 AUD=0.60 GBP
30...
Y, an Australian resident, is the sole shareholder of ABC Pty Ltd, an Australian resident company....
Y, an Australian resident, is the sole shareholder of ABC Pty
Ltd, an Australian resident company. In this income year, ABC Pty
Ltd made an interest free loan of $100,000 to Y. By the income year
end, the company waived 40% of the loan. The balance of the loan
remains outstanding by the company’s lodgement date. The company’s
distributable surplus for the income year is $50,000.
Advise the tax implications of the above transaction for Y. How
will your answer...
Know Your Product Ltd is an Australian company with a functional currency = A$. The company...
Know Your Product Ltd is an Australian company with a functional
currency = A$. The company has entered into a number of
transactions denominated in US$ during the year ended 30 June 2017.
The closing exchange rate is A$1.00 = US$0.77, determine the
translated amount that will be included in financial statements for
each of the following balances. 1. Land at cost US$400 000 acquired
on 1 February 2017 when the exchange rate is A$1.00 = US$0.67. 2.
Land revalued...
Gold Pty Ltd is an Australian resident private company. All the shares in Gold Pty Ltd...
Gold Pty Ltd is an Australian resident private company. All
the shares in Gold Pty Ltd are owned by Johnny Gold.
During the year ended 30 June 2019 the following events
occurred in relation to Gold Pty Ltd:
1 July 2018Opening balance of franking account$200,000
2 July 2018Payment of dividend franked to
70%$1,600,000
28 October 2018Payment of income tax for Gold Pty
Ltd$600,000
26 November 2018Receipt of dividend from another
company
franked to 80%$450,000
31 December 2018Refund of income tax...
You Beaut Ltd is an Australian company which has a functional currency that is A$. It...
You Beaut Ltd is an Australian company which has a functional
currency that is A$. It has reporting periods ending on 31 December
and 30 June. On 22 November 2020 You Beaut Ltd sold some
inventories to a Chinese customer for the agreed price of 400,000
Yuan. The original purchase cost of the inventories was A$75,000.
On 19 January 2021, the customer pays the amount owing on the sales
invoice to You Beaut Ltd.
The applicable exchange rates were:
...
You Beaut Ltd is an Australian company which has a functional currency that is A$. It...
You Beaut Ltd is an Australian company which has a functional
currency that is A$. It has reporting periods ending on 31 December
and 30 June. On 22 November 2020 You Beaut Ltd sold some
inventories to a Chinese customer for the agreed price of 400,000
Yuan. The original purchase cost of the inventories was A$75,000.
On 19 January 2021, the customer pays the amount owing on the sales
invoice to You Beaut Ltd.
The applicable exchange rates were:
...
Company A purchases Company B. This is a 100% equity purchase which means that Company A...
Company A purchases Company B. This is a 100% equity purchase
which means that Company A acquires all of the Company B assets and
assumes the liabilities of Company B.
Calculate the value of goodwill recognized in
the acquisition. Round to the nearest whole dollar and do not
include the dollar sign ($).
Assume
the current market value of tangible physical assets is
$1,357,924 (determined by Company A as at the acquisition
date)
the current market value of the only...
Company A purchases Company B. This is a 100% equity purchase which means that Company A...
Company A purchases Company B. This is a 100% equity purchase
which means that Company A acquires all of the Company B assets and
assumes the liabilities of Company B.
Calculate the value of goodwill recognized in
the acquisition. Round to the nearest whole dollar and do not
include the dollar sign ($).
Assume
the current market value of tangible physical assets is
$864,000 (determined by Company A as at the acquisition date)
the current market value of the only...
Company A purchases Company B. This is a 100% equity purchase which means that Company A...
Company A purchases Company B. This is a 100% equity purchase
which means that Company A acquires all of the Company B assets and
assumes the liabilities of Company B.
Calculate the Price that Company A paid for Company
B in the acquisition. Round to the nearest whole dollar
and do not include the dollar sign ($).
Assume
the current market value of tangible physical assets is
$1,492,000 (determined by Company A as at the acquisition
date)
the current market...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How Adidas Company care about customer equity
- Write no less than 5 sentences answering the following questions using your personal point of view....
- Explain the three accounting changes and correction of an error and the method used to disclose...
- Razin and Wahba [2011] studies the interaction of immigration and welfare policies in EU countries and...
- PLEASE ANSWER AS A TEXT. DON'T WRITE ON A PAPER. Read the article below and answer...
- Explain value-defining, value-developing and value-delivering processes in KFC company
- *****In C++***** Exercise #3: Develop a program (name it AddMatrices) that adds two matrices. The matrices...
ADVERTISEMENT