On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of

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Question:

On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of inventory from an American company, NY Ltd for $US550,000. The exchange rates are provided below:

Transaction:

Inventory purchase (credit) at 30 May 2022 - Exchange rate: A$1=US$0.61

Year End at 30 June 2022 - Exchange Rate: A$1=US$0.63

Cash settlement made to NY Ltd at 27 July 2022 - Exchange rate: A$1=US$0.59

Required:

Record the journal entries to record foreign exchange differences for this transaction. Ignore Narrations.

Related Book For answer-question

Auditing Assurance Services and Ethics in Australia an Integrated Approach

ISBN: 978-1442539365

9th edition

Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler

See More Books

Posted Date: Feb 16, 2024 06:58 AM

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On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of

Question:

Expert Answer:

Here are the journal entries to record foreign exchange differences for this transaction ignoring na... View the full answer

Auditing Assurance Services and Ethics in Australia an Integrated Approach

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