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GFC Ltd is an Australian company with a 3 0 June year end. GFC Ltd purchases inventories from a United States ( US ) supplier
GFC Ltd is an Australian company with a June year end. GFC Ltd purchases inventories from a United States US supplier under an FOB shipping contract for an agreed price of $US GFC Ltd placed the order to buy the goods on May X The goods are put on the ship on May X
GFC Ltd pays the US supplier for the inventories in two equal instalments of $US The payments were made on the dates of July X and August X
Exchange rates are as follows:
May X $US $A
May X $US $A
June X $US $A
July X $US $A
August X $US $A
Prepare the journal entries of GFC Ltd in respect of the purchase of inventory, the yearend adjustment to accounts payable and settlement of accounts payable.
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