URS Ltd is an Australian manufacturer of televisions. The financial year of URS Ltd ends on 30 June. The development within the television industry of three-dimensional pictures has meant that URS Ltd has upgraded some of its plant and equipment. In particular, URS Ltd has imported specialised machinery from the USA to enable the company to construct 3D screens.

The machinery is purchased (and in the control of the organisation) on 30 April 2022 at a price of US$250000. The amount is payable in two instalments, on 31 July 2022, and on delivery on 31 August 2022.

The machinery is to be depreciated from the date it is delivered and ready for use (31 August 2022) at a rate of 10 per cent per annum.

The exchange rates applicable at the above dates are as follows:

The company also purchases S$500 000 worth of spare parts from a Singapore company on 30 May 2022. As URS Ltd has three-month interest-free terms, the amount is payable in full on 31 August 2022. URS Ltd obtains title to the goods when they leave the Singapore factory. The exchange rates applicable at the above dates are as follows:

REQUIRED

Prepare the journal entries to account for the above transactions.

Transcribed Image Text:

30 April 2022 30 June 2022 A$1.00 = US$0.76 A$1.00 US$0.74 US$0.72 31 July 2022 A$1.00 31 August 2022 A$1.00 US$0.74