Question
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.
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: Prepare journal entries for the above transactions.
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30012020 Dr Accounts Receivable US250000 Cr Revenue US2...
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
3rd Canadian edition
1-119-40285-5, 111940276X, 978-1119566007
