Accounting for foreign currency transactions

MyBeauty Ltd is an Australian company which specialises in manufacturing and distributing health and beauty products to both local and international clients. The company has a reporting period which ends on 30 June and the Australian dollar is the functional and presentation currency.

For the financial year ending 30 June 2019, MyBeauty LTd has entered into two independent transactions denominated in foreign currency as follows.

Transaction A

MyBeauty Ltd sells some goods on credit to Bristol Industries, a British company. The contract, dated 1 January 2019, is denominated in United Kingdom pounds and the contract amounts to 150,000. Bristol Industries settles the contract on 29 January 2019.

The relevant exchange rates are as follows:

3 January 2019	A$1.00 = 0.5684
29 January 2019	A$1.00 = 0.5892

Transaction B

On 1 July 2017, MyBeauty Ltd entered into a loan denominated in Euros, borrowing 300,000 from a European Bank. The following summarises the bank loan statements over the period 1 July 2017 to 30 June 2019.

Date	Details	Amount	Balances
1 July 2017	Loan contract principal	300,000	300,000 DR
30 June 2018	Interest	33,000	333,000 DR
30 June 2019	Interest	37,000	370,000 DR

The relevant exchange rates are as follows:

1 July 2017	A$1.00 = 0.6545
30 June 2018	A$1.00 = 0.6045
30 June 2019	A$1.00 = 0.6419

Required:

In accordance with AASB 121, prepare all relevant journal entries of MyBeauty Ltd to account for the above transactions for the financial years ending 30 June 2018 and 2019, where relevant.