Question
Alabaster Ltd has a functional currency of A$. On 15 June 2023, Alabaster Ltd purchases goods on credit terms from a New Zealand supplier for
Alabaster Ltd has a functional currency of A$. On 15 June 2023, Alabaster Ltd purchases goods on credit terms from a New Zealand supplier for NZ$200 000. Alabaster Ltd pays the invoice in full on 20 July 2023. Exchange rates are: 15 June 2023 NZ$1.00 = A$1.05 30 June 2023 NZ$1.00 = A$0.93 20 July 2023 NZ$1.00 = A$0.98 What is the journal entry at the end of the reporting period on 30 June 2023?
a.DR Inventory $186 000
CR Accounts Payable $186 000
b.DR Foreign Exchange Loss $24 000
CR Accounts Payable $24 000
c.DR Foreign Exchange Loss $24 578
CR Accounts Payable $24 578
d.DR Accounts Payable $24 000
CR Foreign Exchange Gain $24 000
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