Punch Limited, a South African, juice making company, purchased 8 new industrial juicing machines to use...

 

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Punch Limited, a South African, juice making company, purchased 8 new industrial juicing machines to use in the production and manufacturing of juice. The juicers were imported from a supplier in France at a cost of $22 000 each and were ordered on a FOB basis. The supplier's functional currency is American dollars. The details of the purchase are as follows: - Machines ordered on the 25th May 2021 - Machines shipped on the 16th July 2021 - Machines arrived in South Africa on the 30th July 2021 Due to the complex nature of the machines, further costs were on the 31st of July 2021 to bring them into operation. The breakdown of the further costs were as follows: . . The machines had to be professionally installed the installation was completed by a local specialist at a cost of R25 000 The machines were extremely complex and thus staff had to be retained and the costs of training the staff to use the new machinery was R20 000 Costs to dispose of the grapes and residue that failed to juice accordingly during the testing phase was R1 000. The machines were available for use on the 1st of September 2021 and were first brought into use on the 1st of October 2021. The machines have a useful life of 10years with a residual of R10 000 at the end of their useful life. Depreciation is provided for on a straight-line basis. Punch Limited paid the specialist and the supplier for the machines on the 31st of August 2021. The following additional information is available: Date Spot rate SA Rand/ US Dollar 25th May 2021 9:00:1 16th July 2021 9.25:1 31st July 2021 9.60: 1 31 August 2021 9.90:1 1 September 2021 9.91:1 31 December 2021 9.99:1 Required: Show all the related journal entries in the books of Punch Limited for the year ended 31st December 2021. Ignore tax. Punch Limited, a South African, juice making company, purchased 8 new industrial juicing machines to use in the production and manufacturing of juice. The juicers were imported from a supplier in France at a cost of $22 000 each and were ordered on a FOB basis. The supplier's functional currency is American dollars. The details of the purchase are as follows: - Machines ordered on the 25th May 2021 - Machines shipped on the 16th July 2021 - Machines arrived in South Africa on the 30th July 2021 Due to the complex nature of the machines, further costs were on the 31st of July 2021 to bring them into operation. The breakdown of the further costs were as follows: . . The machines had to be professionally installed the installation was completed by a local specialist at a cost of R25 000 The machines were extremely complex and thus staff had to be retained and the costs of training the staff to use the new machinery was R20 000 Costs to dispose of the grapes and residue that failed to juice accordingly during the testing phase was R1 000. The machines were available for use on the 1st of September 2021 and were first brought into use on the 1st of October 2021. The machines have a useful life of 10years with a residual of R10 000 at the end of their useful life. Depreciation is provided for on a straight-line basis. Punch Limited paid the specialist and the supplier for the machines on the 31st of August 2021. The following additional information is available: Date Spot rate SA Rand/ US Dollar 25th May 2021 9:00:1 16th July 2021 9.25:1 31st July 2021 9.60: 1 31 August 2021 9.90:1 1 September 2021 9.91:1 31 December 2021 9.99:1 Required: Show all the related journal entries in the books of Punch Limited for the year ended 31st December 2021. Ignore tax.

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In books of Punch Ltd Journal Entries Amount in R Date Particulars Dr Cr 3107202... View the full answer