Lion City Ltd purchased an equipment on credit from a Malaysian supplier on 1 August 2017 for Malaysia Ringgit (MYR) 150,000. This full amount was settled the following year, on 20 January 2018.

Lion City Ltds functional currency is the Singapore dollar (SGD) and its financial year end falls on 31 December.

Exchange rates on 3 dates are given:

Date	Exchange Rate
1 August 2017	MYR 1 = SGD 0.35
31 December 2017	MYR 1 = SGD 0.33
20 January 2018	MYR 1 = SGD 0.37

Requirements

(a) Show all the necessary journal entries in relation to the above foreign currency transaction to be recorded on:

• 1 August 2017
• 31 December 2017
• 20 January 2018

Narration is not required. Use the journal template below, stating the journal dates for each entry clearly.

b. Discuss the differences between functional currency and presentation currency of a company.

C. Indicate if each of the following balance sheet items is monetary or non-monetary:

1. Work-in-Progress Inventory ______________
2. Mortgage Loan ______________
3. Bonds Payable ______________
4. Furniture and fittings ______________
5. Accrued revenue ______________
6. Inventory ______________