The Waffle Corporation entered into two nonmonetary transactions during the current fiscal year. 1. Exchanged inventory having a cost of $2,500 and a retail price of $5,000 for the services of a painting company. The painting company invoice would have been $4,300 had cash been paid for their services. 2. Exchanged 8 inch steel rods with a competitor for 10 inch steel rods. The 8 inch steel rods have a retail price of $1,200 and a cost of $700. The competitor normally sells the steel rods for $680.

Required – Prepare the journal entry to record the above two transactions under (i) IFRS and (ii) ASPE. Waffle uses a perpetual inventory system.

Answer rating: 100% (QA)

Required solution Part1 As per IFRS inventories to be measured at the lower of cost ... View the full answer