Question $2$

Journalize the following transactions:

Q$8$ Corporation, a Kuwait$-$based company $($Functional currency the KWD$),$ had the following transactions with its Bahraini subsidiary $($Functional currency the BHD$)$:

$1.$ January $1,2020$: Sale of equipment $($E$1)$ for $100,000$ KWD on account. Credit terms: Full payment in $6$ months. Interest: $12\%$ per annum. $(10$ points$)$

$2.$ July $1,2020$: Sale of additional equipment $($E$2)$ for $200,000$ KWD payment received by electronic transfer $(5$ points$)$

$3.$ December $31,2020$: What would be the amount of depreciation expense in the consolidated financial statement for the Equipment $($E$1$ & E$2).$ Use straight$-$line, no residual value, useful life $10$ years. Indicate which method you are using. $(5$ points$)$

Additional information:

Exchange rates for the KWD against the BHD

January $1,2020$: $1$KWD $=1\mathrm{.}2290$ BHD; July $1,2020$: $1$KWD $=1\mathrm{.}24000$ BHD;

June $30,2020$: $1$KWD $=1\mathrm{.}2420$ BHD; December $31,2020$: $1$KWD $=1\mathrm{.}2200$ BHD$.$