Prepare the journal entries for the given dates

Assignment Help Accounting Basics
Reference no: EM132691146

Question - On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd's reporting date. The exchange rates at the relevant dates are:

1 March 2020 A$1.00 = NZ$1.20

30 June 2020 A$1.00 = NZ$1.30

1 June 2021 A$1.00 = NZ$1.25 Required:

Required -

a) Determine the amount in AUD, as at: 1 March 2020; and 30 June 2020.

b) Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss.

Reference no: EM132691146

Questions Cloud

Calculate the risk-neutral probability : Calculate the risk-neutral probability (p*) that share price will move up.
What is the amount of supplies expense for the accounting : On the last day of the accounting? period, shows $3,000 of office supplies on hand. What is the amount of Supplies Expense for the accounting? period?
Discussing personal taxes in conjunction : Explain the rationale for also discussing personal taxes in conjunction with a firm's capital structure?
Explain in a coherent and detailed way : Explain in a coherent and detailed way, the following questions.How does capital structure relate to default?
Prepare the journal entries for the given dates : Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss
What is meant by agency cost of leverage : Explain in a coherent and detailed way, the following questions.
What is the new equity beta after debt issuance : Alpha Inc. is an all-equity firm with total assets equal to $375 Million, and 6.8 million shares outstanding. Alpha Inc. has to decide about investing $28 Mill
What are the main mistakes committed by the football team : Create a hypothetical manufacturing or service organization parallel for this activity. Discuss how this assignment would apply to a company.
Discuss risks and audit issues related to cloud computing : Discuss the risks, benefits, and audit issues related to cloud computing. What is the role of internal audit for enterprise-wide risk management?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd