Co Z’s functional currency is the Singapore dollars. It entered into the following transactions in United States dollars during the financial year ended 31 December 20x5.

Required

(a) Show journal entries to record transactions in 20x5 from the available information shown above, including any exchange gain or loss.

(b) Reconcile the exchange gain or loss in

(a) with movement in net monetary assets (liabilities) during 20x5.

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Transactions prior to 20x5 Purchase of fixed assets on 1 Jan 20x4..... Residual value is zero and economic useful life is 10 years. Prepaid rent for period 1 January 20x5 to 28 Feb 20x5.. Accounts receivable Cash. Accounts payable. Transactions during 20x5 Sales on credit.. Purchases on credit.. Balance as at 31 Dec 20x4 Operating expenses paid cash.. Rental paid on 28 Feb 20x5 for period 1 Mar 20x5 to 31 Oct 20x5 Rental paid on 31 Oct 20x5 for period 1 Nov 20x5 to 28 Feb 20x6. Tax expense paid in cash........ Dividends paid on 28 September 20x5.. USD 1,000,000 15,000 300,000 185,000 (900,000) USD 2,000,000 1,500,000 150,000 60,000 30,000 62,000 20,000 90,000 100,000 Purchase of FVOCI securities on 1 December 20x5 Fair value of FVOCI securities on 31 December 20x5. Sales, purchases, operating expenses, tax expense and related cash flows are evenly spread out during the year