Question: Please answer urgent On 1 March 2018 Mohammed Ltd, a UAE company, places an order for US $1.5 million of inventory with Freight plc, a

Please answer urgent Please answer urgent On 1 March 2018 Mohammed Ltd, a UAE company,

On 1 March 2018 Mohammed Ltd, a UAE company, places an order for US $1.5 million of inventory with Freight plc, a US supplier. The goods will be purchased FOB Florida. A decision is made to take August 2018. The goods are shipped on 1 June 2018 on 1 June 2018 and are paid for on 1 August 2018 . Additional information: [a] In which currency is the transaction denominated? [5 Marks] [b] Provide the necessary accounting entries to record the above transactions from 1 March 2018 to 1 August 2018. [25 Marks] [c] Provide evidence of whether or not hedge accounting was effective in the above situation, assuming hedge effectiveness test is performed on the balance sheet date. [10 Marks] On 1 March 2018 Mohammed Ltd, a UAE company, places an order for US $1.5 million of inventory with Freight plc, a US supplier. The goods will be purchased FOB Florida. A decision is made to take August 2018. The goods are shipped on 1 June 2018 on 1 June 2018 and are paid for on 1 August 2018 . Additional information: [a] In which currency is the transaction denominated? [5 Marks] [b] Provide the necessary accounting entries to record the above transactions from 1 March 2018 to 1 August 2018. [25 Marks] [c] Provide evidence of whether or not hedge accounting was effective in the above situation, assuming hedge effectiveness test is performed on the balance sheet date. [10 Marks]

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