Question
On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of inventory from an American company, NY Ltd for
On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of inventory from an American company, NY Ltd for $US550,000. The exchange rates are provided below:
Transaction:
Inventory purchase (credit) at 30 May 2022 - Exchange rate: A$1=US$0.61
Year End at 30 June 2022 - Exchange Rate: A$1=US$0.63
Cash settlement made to NY Ltd at 27 July 2022 - Exchange rate: A$1=US$0.59
Required:
Record the journal entries to record foreign exchange differences for this transaction. Ignore Narrations.
Step by Step Solution
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Step: 1
Here are the journal entries to record foreign exchange differences for this transaction ignoring na...
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Auditing Assurance Services and Ethics in Australia an Integrated Approach
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
9th edition
978-1442539365, 1442539364
