Question 4

A)

On 1 May 2015 Harriet's Importers Ltd acquires goods from a supplier in Britain. The goods are shipped f.o.b. from England on 1 May 2015. The cost of the goods is 200 000. The amount has not been paid at period end 30 June 2015. Exchange rates are as follows:

Harriet's Importers Ltd uses a perpetual inventory system.

What entries are required at transaction date and reporting date (rounded to the nearest whole A$)?

1

2 3.

4.

\begin{tabular}{|l|l|} \hline 1 May 2015 & AS1.00 =0.46 \\ \hline 30 June 2015 & AS1.00 =0.50 \\ \hline \end{tabular} \begin{tabular}{|c|l|r|r|} \hline 1 May 2015 \\ \hline Dr & Accounts receivable & 92000 & \\ \hline Cr & Inventory & & 92000 \\ \hline & & & \\ \hline \multicolumn{2}{|l|}{ June 2015} & & \\ \hline Dr & Accounts receivable & 8000 & \\ \hline Cr & Exchange gain (P\&L) & & 8000 \\ \hline \end{tabular} \begin{tabular}{|c|l|r|r|} \hline 1 May 2015 \\ \hline Dr & Inventory & 434783 & \\ \hline Cr & Accounts payable & & 434783 \\ \hline & & & \\ \hline \multicolumn{2}{|l|}{ June 2015 } & & \\ \hline Dr & Accounts payable & 34783 & \\ \hline Cr & Exchange gain (P\&L) & & 34783 \\ \hline \end{tabular} \begin{tabular}{|c|l|r|r|} \hline 1 May 2015 \\ \hline Dr & Purchases & 108000 & \\ \hline Cr & Cash & & 108000 \\ \hline & & & \\ \hline \multicolumn{2}{|l|}{ June 2015 } & & \\ \hline Dr & Accounts payable & 8000 & \\ \hline Cr & Exchange gain (P\&L) & & 8000 \\ \hline \end{tabular} \begin{tabular}{|c|l|r|r|} \hline 1 May 2015 \\ \hline Dr & Inventory & 370370 & \\ \hline Cr & Accounts payable & & 370370 \\ \hline & & & \\ \hline \multicolumn{2}{|l|}{ June 2015 } & & \\ \hline Dr & Exchange loss & 29630 & \\ \hline Cr & Accounts payable & & 29630 \\ \hline \end{tabular}