XYZ Ltd, which is using VND to record its transactions, obtained a long-term loan of US$100,000 at the beginning of 2009 when the exchange rate was VND/US$ = 18,000. The loan is to be repaid in full in 2014. As at 31 Dec 2009 and 31 Dec 2010, the exchange rate was 19,000 and 20,000 respectively.

Determine journal entries.

Answer rating: 100% (QA)

To record the longterm loan obtained by XYZ Ltd the following journal entry will be made at the begi... View the full answer