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Unformatted text preview: company which requires the New Zealand company to construct an item of machinery for KW Ltd. The cost of the machinery is $NZ 750,000. The machinery is completed on 1 June 2009 and shipped from New Zealand on that date. The debt is paid on 30 July 2009. KW Ltd’s balance date is 30 June. Spot Rates for the period: Date Exchange Rate 1 March 2009 $A1.00 = $NZ 1.2000 1 June 2009 $A1.00 = $NZ 1.3000 Ave Rate 1 Mar – 1 Jun 2009 $A1.00 = $NZ 1.2750 30 June 2009 $A1.00 = $NZ 1.2500 30 July 2009 $A1.00 = $NZ 1.4000 Required: Provide the relevant journal entries for KW Ltd. 4. Questions (Textbook, p224): 18 (b)...
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- Three '11
- New Zealand company