Reference no: EM132594283
Maya plc, a UK company that buys and sells catering equipment in New Zealand, during the year ended 31 December 20X4:
1/11 Buys goods for $30,000 on credit from Napier Ltd
15/11 Sells goods for $40,000 on credit to Wellington Ltd
15/11 Pays Napier Ltd $20,000 on account for the goods purchased
10/12 Receives $25,000 on account from Wellington Ltd in payment for the goods sold
10/12 Buys machinery for $80,000 from Auckland Ltd on credit
22/12 Pays Auckland Ltd $80,000 for the machinery
Boil's functional currency is sterling and the New Zealand companies' functional currency is NZ$.
The exchange rates at the relevant dates were:
1/11 £1 = $2.00
15/11 £1 = $2.20
10/12 £1 = $2.40
22/12 £1 = $2.50
31/12 £1 = $2.60
Question 1: Determine how the transactions will be measured