{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Tute Qs Week 10 - company which requires the New Zealand...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Tutorial Questions for Week 10, commencing 12 th October. 1. Questions (Textbook, p221): 1 - 5 2. On 5 May 2009 Perth Ltd places an order with a supplier in the UK. The goods are  shipped from London on 5 June 2009. The cost of the goods is £UK250,000 and the  debt is settled on 27 July 2009. Spot Rates for the Period: Date Exchange Rate 5 May 2009 $A1.00 = £UK0.4500 5 June 2009 $A1.00 = £UK0.4600 Ave for April – June 2009 $A1.00 = £UK0.4555 30 June 2009 $A1.00 = £UK0.4400 27 July 2009 $A1.00 = £UK0.4800   Perth Ltd’s reporting date is 30 June. Required: Provide   the   accounting   entries   necessary   to   account   for   the   above   purchase  transaction. 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
3. On 1 March 2009 KW Ltd enters into a binding agreement with a New Zealand 
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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)...
View Full Document

{[ snackBarMessage ]}