In: Accounting
Week 10 Fujitsu Ltd purchases inventory from DFO Ltd, a listed
British company. Relevant events and the spot rates at each date
are shown as follows:
Date Event Spot rate 15 March 2019 Order £300,000 of inventory
A$1.00 = £0.37 11 May 2019
Purchase takes place as inventory shipped to Fujitsu Ltd (FOB)
A$1.00 = £0.41
30 June 2019 End of financial year A$1.00 = £0.43 02 July 2019
Inventory arrives at warehouse A$1.00 = £0.42 14 August 2019
Payment of £300,000 to supplier A$1.00 = £0.39
Required: a) Prepare appropriate journal entries for each relevant
event. (Round amounts to the nearest dollar). Show your
working. b) What is a qualifying asset? Provide two (2) examples.
(3 marks, maximum 300 words