Prepare general journal entries

Assignment Help Accounting Basics
Reference no: EM133080681

Question - On 1 May 2018 Bisco Ltd secures a loan from a financial institution in United Kingdom. The money is sent from England on 1 May 2018 to Bisco Ltd in Australia. The loan is valued at £175 000 for 10 years at 8%. Interest to be paid at 30th June every year. Exchange rates are as follows: 1 st May 2018 A$1.00 = £0.35 30th June 2018 A$1.00 = £0.75 Bisco Ltd uses standard accounting entries in its system. What entries are required at transaction date and reporting date (rounded to the nearest whole A$)?

Required - Prepare general journal entries (3 journal entries; 1st May 2018 and 30th June 2018) to record the secure of loan and any fluctuation in currency by Bisco Ltd for the year ended 30 June 2018 in accordance with the requirements of AASB 121.

Reference no: EM133080681

Questions Cloud

Determine the value of mark investment today : Mark invests $75,000 annually for each of 5 years for a particular period. The rate of return is currently10%. Determine the value of Mark's investment today
Creativity-innovation are essential to organization success : Creativity and innovation are essential to an organization's success, and both should be infused into every aspect of a business
How much gain will maren recognize on the sale : How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent
What is the importance of a post service de-brief : What is the importance of a post service de-brief and Explain why you think it is important for all kitchen staff to operate as a team
Prepare general journal entries : The loan is valued at £175 000 for 10 years at 8%. Interest to be paid at 30th June every year. Prepare general journal entries
Strengths in capital asset pricing model : You are the chief financial officer (CFO) of a multi-physician clinic. Do you see weaknesses or strengths in the capital asset pricing model (CAPM)?
What do you predict the exchange rate will be in one year : The inflation rate in the United States will be 2.6 percent per year. It will be 4.5 percent in Hungary. What do you predict exchange rate will be in one year
Record the journal entry for the repayment of the trade note : On July 1, 2019, Bazarist Inc. issued a $1000 trade note to a supplier to purchase inventory. Record the journal entry for the repayment of the trade note
Ways of increasing the surplus product : What are some ways of increasing the surplus product in any economic system? Explain in 200 words.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the total variable expenses

For Garland Company, sales is $1,000,000, fixed expenses are $300,000, and the contribution margin ratio is 36%. What are the total variable expenses?

  Find the beta of the stock

If the return on Treasury Bills is 5%, return on the market is 10%, and required rate of return on a stock is 12%, find the beta of the stock

  Identify distinctions between budgets and standards

Budgets and standards are not the same thing. They have different purposes and are set up and used in different ways; yet a specific relationship exists between

  Compute the cost of finished goods manufactured

Compute the cost of finished goods manufactured. Compute the finished goods inventory, March 31. Compute the cost of goods sold.

  How Marvin and Valerie Corporation record transactions

Marvin Corporation received the vehicle. How should Marvin Corporation and Valerie Corporation record these transactions

  How do determine the correct inventory amount on december

Wildhorse Co. sold goods costing $50,530 to Hemlock Company FOB shipping point on December 28. Determine the correct inventory amount on December 31.

  Explain the role of Superannuation

Question - Explain the role of Superannuation and also Superannuation plans in your own understanding

  Determine the selling price of the bonds

Monty Inc. manufactures cycling equipment. As the controller of the company, determine the selling price of the bonds.

  What is the divisions margin

Ceder Products is a division of a major corporation. Last year the division had total sales of $21,520,000 net operating income of $538,000 and average operating of $8,000,000. The company's minimum required rate of return is 18% a) What is the di..

  Calculate net cash provided or used by financing activities

Net income for the year was $10,000. Use the above information to calculate the net cash provided or used by financing activities

  What is the maximum amount of cca that abc ltd can deduct

What is the maximum amount of CCA that ABC Ltd. can deduct on this building for the taxation year that ends on December 31, 2019

  Suppose the same facts as above except that the allowance

prepare the adjusting entry on december 31 2012 to recognize bad debts expense? erickson company had a 400 credit

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