ACTY Advanced Financial Accounting Semester One, 2020 Question 3 Foreign Exchange Transaction 15 Marks On 20 December 2019 Albatross Ltd, a New Zealand entity, sells US$ 2 million of items to Yankee Ltd, a US entity. The amount is receivable on 10 June 2020. A forward exchange contract for the sale of US$ 2 million is taken out with NZ Bank on 15 January 2020. It requires delivery of the foreign currency by Albatross Ltd on 10 June 2020. Albatross Ltd has a 31 March balance date. Assume a discount rate of 0 per cent per annum. The exchange rates are as follows: Date Forward rate NZ$1 = US$ 20 December 2019 15 January 2020 31 March 2020 10 June 2020 Spot rate NZ$1 = US$ $0.85 $0.80 $0.81 $0.79 $0.78 $0.76 $0.79 Required: Record the journal entries for Albatross Ltd to account for the above transactions. (round all calculations to the nearest dollar)