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

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot...

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...

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...

Suppose a Ghanaian company, NFC Ltd, exported goods to MNP Ltd, British company and billed £10...

Suppose a Ghanaian company, NFC Ltd, exported goods to MNP Ltd, British company and billed £10 million payable in one year. The money market interest rates and foreign exchange rates are given as follows: Foreign exchange rates Money market interest rates Spot rate GHS5.50/£ Ghana 6.10% per annum Forward rate GHS5.70/£ (I year maturity) UK 9.00% per annum a. Calculate the GHS proceeds from this transaction if NFC Ltd hedged its receivable through a forward market contract. b. Suppose on...

Warmth (Pty) Ltd, a leading retailer of plush Sherpa throws, purchases its inventory on credit from...

Warmth (Pty) Ltd, a leading retailer of plush Sherpa throws, purchases its inventory on credit from Continental Luxury Ltd. Warmth (Pty) Ltd has an overdraft facility at Winter Bank Ltd that accrues interest at 16% per annum. Continental Luxury Ltd offers terms of 2/10 net 60. Calculate the approximate cost of giving up the cash discount and determine whether the discount should be taken or not.

On July 1, 2017, Bramble Ltd., a publicly listed company, acquired assets from Sheffield Ltd. On...

On July 1, 2017, Bramble Ltd., a publicly listed company, acquired assets from Sheffield Ltd. On the transaction date, a reliable, independent valuator assessed the fair values of these assets as follows: Manufacturing plant (building #1) $399,930 Storage warehouse (building #2) 209,860 Machinery (in building #1) 75,000 Machinery (in building #2) 44,860 The buildings are owned by the company, and the land that the buildings are situated on is owned by the local municipality and is provided free of charge...

(Note this question is from the Week 10 Tutorial) On 1st July, 2018 Nile Ltd acquired...

(Note this question is from the Week 10 Tutorial) On 1st July, 2018 Nile Ltd acquired 70% of the share capital of Amazon Ltd for $80,000,000. The equity of Amazon Ltd as at the acquisition date was: Share Capital $ 52,000,000 General Reserve $ 20,000,000 Retained Earnings $ 10,000,000 All assets of Amazon Ltd were recorded at fair value on acquisition, except for one property which had a fair value which was $2,000,000 lower than its’ carrying amount. The cost...

Out of 10 customers- Customer A purchases the most products from a company but is not...

Out of 10 customers- Customer A purchases the most products from a company but is not the most profitable for the company (Customer B is the most profitable out of the 10 customers), what concerns might you have from an audit perspective?

Question 5 (7 marks) (This question is from the Week 10 Tutorial) Big Water Ltd currently...

Question 5 (This question is from the Week 10 Tutorial) Big Water Ltd currently has the following capital structure: Debt: $4,500,000 paying 9.5% coupon bonds outstanding with 12 years to maturity, an annual before-tax yield to maturity of 8% on a new issue. The bonds currently sell for $1,113 per $1,000 face value. Ordinary Shares: 65,000 shares outstanding currently selling for $75 per share. The company just paid a $6.50 dividend per share and is experiencing a 6% growth rate...

Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining...

Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company’s revenues and expenses (in British pounds) for the last three months are given below: Arnall Ltd. Comparative Income Statements For the Three Months Ended June 30 April May June Sales in units 1,100 4,300 5,900 Sales revenue £ 209,000 £ 817,000 £ 1,121,000 Cost of goods sold 100,100 391,300 536,900 Gross margin 108,900 425,700 584,100 Selling and administrative...

Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining...

Arnall Ltd., a British merchandising company, is the exclusive distributor of a product that is gaining rapid market acceptance. The company’s revenues and expenses (in British pounds) for the last three months are given below: Arnall Ltd. Comparative Income Statements For the Three Months Ended June 30 April May June Sales in units 1,900 4,900 5,900 Sales revenue £ 323,000 £ 833,000 £ 1,003,000 Cost of goods sold 134,900 347,900 418,900 Gross margin 188,100 485,100 584,100 Selling and administrative expenses:...

Subjects