On 1 March 2022 Possum Ltd, an Australian entity, purchases US$1.5 million of inventory from Lincoln Inc.,
Question:
On 1 March 2022 Possum Ltd, an Australian entity, purchases US$1.5 million of inventory from Lincoln Inc., a US entity. The amount is paid on 1 August 2022. Possum Ltd has a 30 June financial year end.
REQUIRED
Prepare the journal entries for Possum Ltd to account for the above transaction.
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Additional information Spot rate Date 1 March 2022 A$1.00 = US$0.70 30 June 2022 A$1.00 = US$0.72 1 August 2022 A$1.00 = US$0.70
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