On 20 June, Jacaranda Ltd acquires equipment on credit terms from a New Zealand supplier, Dunedin Ltd, for NZ$180 000. The exchange rate at 20 June was NZ$1.00 = A$0.85. On 30 June the exchange rate is NZ$1.00 = A$0.80. Jacaranda Ltd pays Dunedin Ltd in full on 14 July when the exchange rate is NZ$1.00 = A$0.82.

The journal entry recorded by Jacaranda Ltd for the purchase of the equipment on 20 June is:

Select one:

DR Equipment A$147 600; CR Payable to Dunedin Ltd A$147 600

DR Equipment A$180 000; CR Cash A$180 000

DR Equipment A$144 000; CR Payable to Dunedin Ltd A$144 000

DR Equipment A$153 000; CR Payable to Dunedin Ltd A$153 000

2.

Retained earnings are a component of:

Select one:

comprehensive income

other equity

contributed equity

reserves

3.

The appropriate journal entry to recognise the accounting treatment for share issue costs is:

Select one:

DR Share capital: CR: Cash

DR Deferred asset: CR Cash

DR Cash: CR Deferred asset

DR Cash: CR Share capital

4.

Dividends declared after the balance date but before the financial statements are authorised for issue:

Select one:

are recognised in the statement of financial position as they meet the definition of equity

meet the recognition criteria for a liability

satisfy the recognition criteria for an expense

do not meet the AASB 137 criteria of a present obligation