QUESTION 2 IAS 21 The effects of changes in foreign exchange rates outlines how to account for transactions in foreign currencies and foreign operations, and also how to translate financial statements into a presentation currency. (a) Westbridge Ltd, an entity based in US sold goods on credit to overseas for Kr300,000 on 28 June 2021 when the exchange rate was Kr0.65: $1. The customer paid in 27 August 2021 when the rate was Kr0.70: $1. The financial year of Westbridge Ltd ends on 30 September. The exchange rate at the year ended 30 September 2021 was Kr0.75: $1. (b) REQUIRED: i) List the journal entries to record the sale of goods by Westbridge Ltd. (4 marks) ii) List the journal entries to record the payment received in August 2021. 111) (6 marks) If the amount was outstanding at the year end, perform calculation on the exchange gain or loss and list the journal entries. (4 marks) On 1 September 2021, Brookfield Ltd, a US entity purchased goods on credit from a foreign country for Z$62,400. At year end on 30 September 2021, the goods are remain unsold. The relevant exchange rates were as follow: 1 September 2021 $1 = Z$10.27 30 September 2021 $1 = Z$9.94 REQUIRED: List the journal entries to record the purchase of goods by Brookfield Ltd. As the goods are unsold at the year end, determine the value of the inventory to be recorded. (5 marks)