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Alabaster Ltd has a functional currency of A$. On 15 June 2023 , Alabaster Ltd purchases goods on credit terms from a New Zealand supplier
Alabaster Ltd has a functional currency of A$. On 15 June 2023 , Alabaster Ltd purchases goods on credit terms from a New Zealand supplier for NZ $220000. 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 2023NZ$1.00=A$0.90 20 July 2023NZ$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 \$244 444 CR. Foreign Exchange Gain \$5 314 CR. Cash \$ 239130 b. DR. Foreign Exchange Loss $4400 DR. Accounts Payable $198000 CR. Cash $202400 c. DR. Accounts Payable $209000 CR. Foreign Exchange Gain \$6 600 CR. Cash \$202 400 d. DR. Foreign Exchange Loss \$7 551 DR. Accounts Payable $231579 CR. Cash \$239130
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