On $1$ September $2020,$ Spice Limited placed an order for inventory with an American supplier for

$$105000.$ Spice Limited$’$s functional currency is the South African Rand. The inventory was shipped

on the $15$th September $2020$ and was scheduled to arrive on the $20$th November $2020.$ Due to

unforeseen circumstances, the ship only docked at the Harbour in Durban on the $1$st of December

$2020.$ The terms of the purchase of the inventory were that it would be shipped on a CIF basis. The

year$-$end of Spice Limited is $31$ December.

Date Exchange Rate

$1$ September $2020$ $$1=$ R$14,10$

$1$ December $2020$ $$1=$ R$14,35$

$31$ December $2020$ $$1=$ R$14,45$

$1$ March $2021$ $$1=$ R$14,65$

Required

Prepare the journal entries to record all matters relating to the acquisition and payment of the inventory assuming:

$2\mathrm{.}1$ Payment for the inventory was made on $31$ December $2020$

$2\mathrm{.}2$ Payment for the inventory was made on $1$ March $2021$

 

Answer rating: 100% (QA)

21 Payment for the inventory was made on 31 December 2020 Dr Inventory Asset R1 48... View the full answer