Albury Ltd is an Australian company for which the Australian dollar is the functional and presentation currency. The company has entered into a number of foreign activities, and these include the following: (a) Albury Ltd has sold some inventory to a company in Hong Kong for HK$50,000. The order was placed by the Hong Kong company on 18 May 2020, with delivery made on 15 June 2020. Under the conditions of the contract, title to the goods passes to the Hong Kong company on delivery. Albury Ltd receives payment for the goods on 28 July 2020. The following exchange rates are applicable: 18 May 2020: A$1.00 = HK$5.70 15 June 2020: A$1.00 = HK$6.20 30 June 2020: A$1.00 = HK$6.50 28 July 2020: A$1.00 = HK$6.40 (b) Titanic Ltd was incorporated in USA on 1 July 2019 as a wholly owned subsidiary of Albury Ltd, with share capital of US$300,000. Titanic Ltds functional currency is US$. Its statement of profit or loss and other comprehensive income for the year ended 30 June 2020 and statement of financial position at that date appear as follows: Titanic Ltd Statement of Profit or Loss and other Comprehensive Income for the year ended 30 June 2020 US$ US$ Sales 850,000 Less: Cost of goods sold Purchases 290,000 Closing stock (50,000) (240,000) Gross profit 610,000 Less: Selling expenses (12,000) Depreciation (10,000) Interest expense (5,000) Rent expense (26,000) Other expenses (105,000) (158,000) Profit before tax 452,000 Income tax expense (122,000) Profit after tax 330,000 Less: Dividend paid (80,000) Retained earnings 30 June 2020 250,000 Page 5 of 5 Titanic Ltd Statement of Financial Position as at 30 June 2020 US$ US$ Assets Bank 15,000 Accounts receivable 128,000 Inventory 50,000 Land 280,000 Buildings 120,000 Accumulated depreciation (10,000) 110,000 Total assets 583,000 Liabilities Accounts payable 9,000 Bank loan 24,000 Net assets 550,000 Equity Share capital 300,000 Retained earnings 250,000 550,000 Relevant exchange rates were as follows: 1 July 2019 A$1.00 = US$0.76 31 December 2019 A$1.00 = US$0.80 1 May 2020 A$1.00 = US$0.71 30 June 2020 A$1.00 = US$0.69 Average for 01/04/2020 to 30/06/2020 A$1.00 = US$0.70 Average for the financial year A$1.00 = US$0.72 Sales, purchases and expenses were earned and incurred evenly over the course of the financial year. The dividend was paid on 1 May 2020, and the inventory on hand at reporting date had been acquired evenly over the period of 1 April to 30 June 2020.

Required

: (i) Prepare the journal entries to record the foreign currency transaction entered into by Albury for the sale of inventory to the company in Hong Kong in accordance with AASB 121. Show all workings.

(ii) Complete the worksheet on the next page to translate the financial statements of Titanic Ltd from the US dollar functional currency to the Australian dollar presentation currency in accordance with AASB 121.