On 1/04/2019, AUS Ltd enters into a binding agreement with a Canadian company to construct an item of machinery that manufactures spoons. The cost of the machinery is $400,000 Canadian Dollars. The construction of the machinery is completed on 1/06/2020 and shipped to FOB Canada on that date. The debt is unpaid on 30 June 2020, which is also AUS Ltd’s end of the reporting period. The exchange rates at the relevant dates are:

• 01/04/2019 A$1.00 = C$1.10

• 30/06/2019 A$1.00 = C$1.05

• 01/06/2020 A$1.00 = C$1.02

• 30/06/2020 A$1.00 = C$1.00

Provide the required journal entries for the above transactions.

Answer rating: 100% (QA)

Journal Entries Date Account Titles and Explanation ... View the full answer