Max Ltd sells equipment to Star Ltd, a U.S. company on 30/01/2020 for US$250,000. Goods are invoiced in US dollars. Payment is made on 5/03/2020. The company also buys parts from the USA, also invoiced in US$, value US$187,500 on 20/4/2020. The functional currency of Max Ltd is AUD$. As at 30/06/2020, this debt unpaid.

Rates:

30/01 A$1 = US$0.93

5/03 A$1 = US$0.92

20/4 A$1 = US$0.94

30/6 A$1 = US$0.91

Required: SHOW YOUR WORKINGS Prepare journal entries for the above transactions. (7 marks) (Round answers to the nearest dollar, e.g. $200,263.57 = $200,264).