Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION FOUR [25] Sport Direct Limited placed an order for 500 TR56 machines at a cost of $150 000 (after discount) from Walles Limited, a

image text in transcribed
QUESTION FOUR [25] Sport Direct Limited placed an order for 500 TR56 machines at a cost of $150 000 (after discount) from Walles Limited, a supplier in the UK. The TR56 machines are top of the range ball feeder machines and are exclusive to Walles Limited. The order was placed on the 15th of March 2020 as Sport Direct is hoping it will arrive in time for the cricket league season. The order was accepted by Walles Limited on the 18th of March 2020. The order was completed and packed for loading on the 27th of June 2020. On the 1st of July 2020, the stock was delivered to the harbour and loaded onto the ship. Due to industrial strike action by staff at the Port, the ship had to delay its leaving of the Port. The ship eventually left the harbour on the 6th of July 2020 and arrived in Durban on the 1 August 2020. The inventory was off loaded and released from Customs on the same day. On the 3rd of August 2020, the inventory was delivered to Sport Direct's warehouse. The company sold 80% of the goods ordered to a local sports organization by the 31st of December 2020 with a markup on Page 4 of 5 20% on cost. Payment for the order was made on the 15th of January 2021. Sport Direct Limited's financial year end is 31st of December. Required: 1. State the transaction, translation, and settlement dates assuming the machines were shipped FOB with supporting reasons where possible for your answer. (3) 2. Show all the journal entries in the books of Sport Direct Limited for the year ended 31 December 2020 and journals for the ended 31 December 2021. Assumed the goods were shipped using the CIF method. Please include narrations and dates and workings - marks will be awarded! (22) DATE 15 March 2020 6 6 July 2020 1 August 2020 31 December 2020 15 January 2021 EXCHANGE RATE $1 = 15 $1 = 15,2 $1 = 15,6 $1 = 15,1 $1 = 14,9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Case Studies In Strategic ManagementHow Executive Input Enables Students Development

Authors: Gunther Friedl, Andreas Biagosch

1st Edition

3319955543, 9783319955544

More Books

Students also viewed these Accounting questions