Foreign Currency Transactions Exercises Exercise 1 Know Your Product Ltd is an Australian company with a functional currency of A$. The company entered into a number of transactions denominated in US$ during the year ended 30 June 2018. If the closing exchange rate is A$1.00 = US$0.77, then determine the translated amount that will be included in the financial statements for each of the following balances: 1. Land at cost US$400,000 acquired on 1 February 2018 when the exchange rate is A$1.00 = US$0.67. Land revalued to US$600,000 on 30 June 2018 that had cost US$400 000 on 1 February 2018 when the exchange rate was A$1.00 = US$0.67. Credit sale of US$80,000 on 12 March 2018 when the exchange rate is A$1.00 = US$0.69. Received cash from debtor of US$40 000 on 30 June 2018. Credit purchase of inventories of US$250,000 on 15 June 2018 when the exchange rate is A$1.00 = US$0.62. The creditor remains unpaid at 30 June 2018. A loan payable of US$800,000 arranged on 1 January 2018 when the exchange rate is A$1.00 = US$0.60. On 30 June 2018, the outstanding interest on the loan is US$20 000