A UK company buys goods from a US supplier for $30,000 on 30 November Year 1 when the spot exchange rate was $1.50. The company has a financial year that ends on 31 December. At 31 December Year 1, the exchange rate is $1.80 = 1.

The payment for the goods is made on 16 March Year 2, when the exchange rate was $1.60 = 1.

Show all journal entries to record the transactions

Determine the following

-Initial recognition

-Recognition at settlement

-Recognition at reporting period

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