Question
Bethany Builders enters into a contractual agreement with an Australian company on 1 March 2020, which requires the Australian company to construct an item of
Bethany Builders enters into a contractual agreement with an Australian company on 1 March 2020, which requires the Australian company to construct an item of machinery for Bethany Builders. The cost of the machinery is AUD$750 000. The machinery is completed on 1 June 2020 and shipped FOB Brisbane on that date. The debt is unpaid at 30 June 2020 which is also Bethany Builders reporting date. The exchange rates at the relevant dates are as follows: 1 March 2020 FJ$1.00 = AUD$1.20 1 June 2020 FJ$1.00 = AUD$1.30 30 June 2020 FJ$1.00 = AUD$1.25 Required: (a) Provide the relevant journal entries of Oriental Building solutions for the year ending 30 June 2020. (Narrations are not required).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started