Question: Question 6 (10 marks) On 1 March 2017 Sunshine Ltd enters into a binding agreement with a Singapore company to construct an item of machinery

Question 6 (10 marks) On 1 March 2017 Sunshine Ltd enters into a binding agreement with a Singapore company to construct an item of machinery that manufactures spoons. The cost of the machinery is s$250,000. The construction of the machinery is completed on 1 June 2018 and shipped FOB Singapore on that date. The debt is unpaid at 30 June 2018. Sunshine Ltd's end of reporting period is 30 June. The exchange rates at the relevant dates are: 01 March 2017 30 June 2017 01 June 2018 A$1.00-S$1.10 A$1.00 S$1.05 A$1.00-S$1.02 A$1.00 S$1.00 30 June 2018 Required: Provide the required Journal entries for the years ending 30 June 2017 and 30 June 2018. To keep the example relatively simple, present values can be ignored. (10 marks)

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