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(a) On 1 July 2022, Lawrence Ltd enters into an arrangement with a US bank-Peter Bank-to borrow US$3,000,000. The term of the loan is 5
(a) On 1 July 2022, Lawrence Ltd enters into an arrangement with a US bank-Peter Bank-to borrow US$3,000,000. The term of the loan is 5 years with interest payable annually in arrears on 30 June at the rate of 10 per cent. The exchange rate information is:
1 July 2022. A$1 - US$0.62
30 June 2023. A$1 - US$0.48
What journal entries are required in Lawrence Ltd's books for 1 July 2022 and 30June 2023 in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates'? Round to the nearest dollar.
(a) On 1 July 2022, Lawrence Ltd enters into an arrangement with a US bank-Peter Bank-to borrow US$3,000,000. The term of the loan is 5 years with interest payable annually in arrears on 30 June at the rate of 10 per cent. The exchange rate information is:
1 July 2022. A$1 - US$0.62
30 June 2023. A$1 - US$0.48
What journal entries are required in Lawrence Ltd's books for 1 July 2022 and 30June 2023 in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates'? Round to the nearest dollar.
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