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$220 000. Alabaster Ltd pays the invoice in full on 20 July 2023. Exchange rates are: 15 June 2023 NZ$1.00 = A$0.95 30 June 2023 NZ$1.00 = A$0.90 20 July 2023 NZ$1.00 = A$0.92 What is the journal entry at the date of the cash payment on 20 July 2023?

a. DR. Accounts Payable $209 000 CR. Foreign Exchange Gain $6 600 CR. Cash $202 400

b. DR. Accounts Payable $244 444 CR. Foreign Exchange Gain $5 314 CR. Cash $ 239 130

c. DR. Foreign Exchange Loss $4 400 DR. Accounts Payable $198 000 CR. Cash $202 400

d. DR. Foreign Exchange Loss $7 551 DR. Accounts Payable $231 579 CR. Cash $239 130

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$220 000. Alabaster Ltd pays the invoice in full on 20 July 2023. Exchange rates are: 15 June 2023 NZ$1.00 = A$0.95 30 June 2023 NZ$1.00 = A$0.90 20 July 2023 NZ$1.00 = A$0.92 What is the journal entry at the date of the cash payment on 20 July 2023?

a. DR. Foreign Exchange Loss $4 400 DR. Accounts Payable $198 000 CR. Cash $202 400

b. DR. Accounts Payable $209 000 CR. Foreign Exchange Gain $6 600 CR. Cash $202 400

c. DR. Accounts Payable $244 444 CR. Foreign Exchange Gain $5 314 CR. Cash $ 239 130

d. DR. Foreign Exchange Loss $7 551 DR. Accounts Payable $231 579 CR. Cash $239 130