Question
On 1 July 2019 Kanga Consultants Ltd completes a contract to provide advice on the installation of a networked computer system to a company in
On 1 July 2019 Kanga Consultants Ltd completes a contract to provide advice on the installation of a networked computer system to a company in the US. The client pays the fee of US$500 000 into Kanga Consultants' US bank account on that date. The bank pays interest of 8 per cent annually on 30 June. The exchange rate information is:
Date | Exchange rate |
1 July 2019 | AU$1 = US$0.78 |
30 June 2020 | AU$1 = US$0.62 |
Prepare the relevant journal entries are required in Kanga Consultants Ltd's books for 1 July 2019 and 30 June 2020 in accordance with AASB 121 (rounded to the nearest whole AU$)?
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