On May 15th 20X0 Unity Pvt. Ltd. entered into a contract with Kronika LLC. to ship them

Fantastic news! We've Found the answer you've been seeking!

Question:

On May 15th 20X0 Unity Pvt. Ltd. entered into a contract with Kronika LLC. to ship them a specialized machinery for 5,000 USD. Unity shipped the machinery on 23rd June but by the end of its financial year i.e. 30th June 20x0, Unity did not received any amount due from Kronika. However on 20th August 20X0 Unity Ltd. received an amount of 3,500 USD in its foreign currency bank account along with a confirmation email from Kronika about the transfer. On January 1920X1 Unity shipped another machinery for 7,000 USD and entered into a contract for 4,500 USD to provide technical services to Kronika until 30th June 20X2.

On March 13th 20X1 Unity received another 5,500 USD and by the end of its financial year 20X2

Unity still had to receive the remaining amount from Kronika. Unity provided technical services to Kronika evenly throughout the contracted period and decided to account for service revenue and the corresponding receivables at the year-end on the average rate of exchange for foreign currency. Unity's presentation and functional currency is PKR and the exchange rates on the effective dates were as follows.

Date ...........................................................PKR USD

May 15 20x0 ................................................102.68 1

June 2320x0 June 30 20x0 ..........................112.98 1

August 20 20X0 January 120x1 ..................108.75 !

March 13° 20X1 ..........................................127.36 1

June 30 20X1 .................................................129.001

Avg. for the financial year ended 30 June 20X1 117.661

June 30 20X2 .............................................152.551

Avg. for the financial year ended June 30 20X2 135.101

Required:

1. Pass all the necessary journal entries in the books of Unity Pvt. Ltd. to record the effects of the given transactions for the years 20X0-20X2.

2. Provide the extracts from the statements of comprehensive income and the statements of financial position along with relevant notes to show the effects of the given transactions for the years 20X0-20X2 for Unity Pvt. Ltd.