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

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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. 
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3. On 1 March 2009 KW Ltd enters into a binding agreement with a New Zealand 
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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 Ltds 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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This note was uploaded on 04/30/2011 for the course BUSS 3003 taught by Professor Kentwilson during the Three '11 term at South Australia.

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

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