Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:

Date Event Spot rate

15 March 2019 Order 300,000 of inventory A$1.00 = 0.37

11 May 2019 Purchase takes place as inventory A$1.00 = 0.41

shipped to Fujitsu Ltd (FOB)

30 June 2019 End of financial year A$1.00 = 0.43

02 July 2019 Inventory arrives at warehouse A$1.00 = 0.42

14 August 2019 Payment of 300,000 to supplier A$1.00 = 0.39

Required:

a) Prepare appropriate journal entries for each relevant event. Show your working.

b) What is a qualifying asset? Provide two (2) examples.