Question
Terry Pty Ltd signed a binding agreement with NZ plc, an NZ firm, to build an equipment. The equipment requires a period of time to
Terry Pty Ltd signed a binding agreement with NZ plc, an NZ firm, to build an equipment. The equipment requires a period of time to construct to get ready for its intended use. Terry Pty Ltd treats the equipment as a qualifying asset. Relevant events and the spot rates at each date are shown follows:
Date
Event
Sport rate
1 March 2021
Signed a binding contract worth NZ $12 000 with NZ plc to construct the equipment.
A$1.00 = NZ$1.20
30 June 2021
Terry Pty Ltd's end of financial year
A$1.00 = NZ$1.25
15 July 2021
Finished construction and the equipment get ready for use
A$1.00 =NZ$1.24
14 August 2021
Made payment of NZ$12 000 to NZ plc.
A$1.00 = NZ$1.26
journal entries for each relevant event in australia dollar
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