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Week 10 Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and...

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

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ekkarill92 answered 2 years ago
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