QUESTION 2 (13 Marks)

Purchase of machine

A machine was purchased from an American supplier on credit at US $13 846,15. It was ordered on 1 September 2019 and arrived in Walvis Bay harbour on 15 October 2019. It was installed by a South African engineer at a cost of N$ 10 000 (excluding VAT) on 30 October 2019 and was ready for use on 1 November 2019, even though it was only taken into use on 8 November 2019. The creditor was paid on 31 May 2020.

The following exchange rates applied at the given dates:

1 September 2019	US $1 = N$ 6,42
15 October 2019	US $1 = N$ 6,50
30 October 2019	US $1 = N$ 6,60
1 November 2019	US $1 = N$ 6,80
8 November 2019	US $1 = N$ 7,20
30 April 2020	US $1 = N$ 7,50
31 May 2020	US $1 = N$ 7,00

The machine is depreciated according to the standard policy of the company, i.e., straight line at 20% p.a. The reporting period ends on 30 April each year.

REQUIRED:

Prepare ALL the journals relating to the machine above (from its original purchase until the end of 2021 (30/4/2021)) to record the transactions. Journal descriptions are required. (13 marks)

Show all calculations clearly.

Round off figures to the nearest rand.

Ignore vat.