View the step-by-step solution to:

Question

This question was created from week 13 activity.docx https://www.coursehero.com/file/29293213/week-13-activitydocx/

29293213-314468.jpeg
29293213-314468.jpeg

Question 2 - 2"d semester 2013
On 1 February 2014, Candlenut Ltd signs a contract to purchase equipment from a manufacturer
located in the USA. The cost of the equipment is US$200,000. The construction of the equipment
is completed on 1 March 2015 and payment is made on 30 June 2015.
Additional information
Candlenut Ltd has financial years ending on 30 June. Relevant exchange rates are as follows:
1 February 2014
$AUD1 = US$0.77
30 June 2014
$AUD1 = US$0.79
1 March 2015
$AUD1 = US$0.82
30 June 2015
$AUD1 = US$0.90
Required
Prepare journal entries for the purchase of the asset for the period 1 February 2014 to 30 June
2015 in accordance with AASB 121 and AASB 123.
Narrations are not required - round all calculations to the nearest dollar.
[Total for Question 2 = 10 marks]
Date
particulars
Debit
Credit
1/2/ 14
30/6/14
1/3/15
30/6/15

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes