Question: 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

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.

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

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