Determine the translated amount that will be included

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Reference no: EM132812463

Thomas Ltd is an Australian company that sells eucalyptus products, with a functional currency of A$. The company entered into a number of transactions denominated in US$ during the year ended 30 June 2020.

Problem 1: Given that the closing exchange rate is A$1.00 = US$0.77, determine the translated amount that will be included in the financial statements for each of the following transactions or events:

1. Credit sale of US$240,000 on 12 March 2020 when the exchange rate is A$1.00 = US$0.68. Received cash from debtor of US$120,000 on 30 June 2020.

2. Credit purchase of inventories of US$320,000 on 15 June 2020 when the exchange rate is A$1.00 = US$0.62. The creditor remains unpaid at 30 June 2020.

Reference no: EM132812463

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