Dale plc is a UK company which has the Pound Sterling as its functional currency. The company has the following transactions in Euros during the year to 31 December 2010 the financial years is from 1 January-31 December

1 October 2010- Inventory costing 50,000 Euros purchased on credit from Y

1 November 2010- Equipment costing 200,000 Euros purchased on credit from X and signed a note payable

30 November 2010-Paid Y 30,000 Euros on account for the inventory bought on 1 October

15 December 2010- Paid X 150,000 Euros for the equipment purchased on 1 November.

Exchange rates may be assumed as follows:

1 October 2010- 1 Pound= 3.0 Euro

1 November 2010- 1 Pound = 2.80 Euro

30 November 2010- 1 Pound= 2.50 Euro

15 December 2010- 1 Pound= 2.40 Euro

31 December 2010- 1 Pound = 2.20 Euro

Required:

Record the journal entries for the transactions above

Record the entries at the reporting date 31 December 2010

Based on the entries above also, find

A.The exchange/gain loss recognized in the books of Dale on 30 November 2010

B.The exchange/gain loss recognized in the books of Dale on 15 December 2010

C.The exchange gain/loss on retranslating the monetary liability Accounts Payable for Y on the reporting date of 31 December 2010

D.The exchange gain/loss on retranslating the monetary liability Note Payable for X on the reporting date of 31 December 2010

E.The exchange gain/loss on retranslating all the monetary items on the reporting date of 31 December 2010

F.The Total exchange gain/loss that is reported in the income statement of Dale Plc Company for year ended 31 December 2010