Goods are shipped f.o.b. from the United States on 1 May 2020. The cost of the goods is US$1 500 000. The amount has not been paid at period end, 30 June 2020.

Exchange rates are as follows:

1 May 2020A$1.00 = US$0.79

30 June 2020A$1.00 = US$0.72

Prepare the journal entries that are required at transaction date and reporting date (rounded to the nearest whole A$).

The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 7 per cent. The exchange rate information is:

1July 2018A$1.00 = $HK5.25

30 June 2019A$1.00 = $HK4.50

30 June 2020A$1.00 = $HK5.50

Required:

Prepare the journal entries that are required in McGrath Ltd's books for 1 July 2018 and 30 June 2019 and 30 June 2020 in accordance with AASB 121 (rounded to the nearest whole A$)