On 1 January 20X4 (transaction date), Jessey Ltd a South African company bought a machine from an American company for $100 000. Jessey Ltd settled the debt on 31 March 20X5.

The relevant exchange rates are as follows: (Rand: Dollar)

1 January 20X4           R6.50: = $1

31 March 20X4           R6.30: = $1

31 December 20X4     R6.60: = $1

31 March 20X5           R6.40: = $1

31 December 20X5     R6.20: = $1

The machine is depreciated to a R20 000 residual value over 5 years using the straight-line method. The recoverable amount calculated on 31 December 20X5 was R388 000.

Required:

1. Show all the South African’s entity journals for the ended 31 December 20X4 and 20X5.

Answer rating: 100% (QA)

Date 01Jan20X4 Account Title Machinery Accounts Payable Being record of purchase ... View the full answer