On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of
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Question:
On 30 May 2022, Sheila Ltd is an Australian based company and has made credit purchase of inventory from an American company, NY Ltd for $US550,000. The exchange rates are provided below:
Transaction:
Inventory purchase (credit) at 30 May 2022 - Exchange rate: A$1=US$0.61
Year End at 30 June 2022 - Exchange Rate: A$1=US$0.63
Cash settlement made to NY Ltd at 27 July 2022 - Exchange rate: A$1=US$0.59
Required:
Record the journal entries to record foreign exchange differences for this transaction. Ignore Narrations.
Related Book For
Auditing Assurance Services and Ethics in Australia an Integrated Approach
ISBN: 978-1442539365
9th edition
Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler
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