On 1 July 2023, Yananga Ltd, an Australian company that has A$ as its functional currency, enters a loan agreement with a lender in Hong Kong to borrow HK\($700\)  000 and uses the funds to acquire components for construction of a warehouse. By 31 December 2023, when the warehouse is ready to use, further costs of A\($300\)  000 have been paid to finish its construction. The interest on the borrowings is payable half-yearly in arrears at the fixed interest rate of 2% p.a. with interest payments of HK\($7\) 000 (HK\($700\)  000 x 2% x ½ year) due on 31 December and 30 June each year. Yananga Ltd prepares half-yearly reports and its reporting periods end 30 June and 31 December each year. The following exchange rates are applicable for the annual financial period to 30 June 2024.

Required 

In accordance with AASB 121/IAS 21, prepare the necessary entries in relation to the transactions up until and including 30 June 2024.

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1 Jul. 2023 A$1=HK$5.60 Average Jul.-Dec. 2023 A$1=HK$5.65 31 Dec. 2023 A$1=HK$5.70 Average Jan.-Jun. 2024 A$1=HK$5.72 30 Jun. 2024 A$1=HK$5.75