Reference no: EM132945122

Questions -

Q1. PL Co purchased goods on credit from a US supplier costing $US225,000 on 5th June 2020 when the exchange rate was A$1 = US0.69. On 30 June 2020, balance date, the exchange rate was A$1 = US0.72. PL Co paid the US supplier on 7th July 2020 when the exchange rate was A$1 = 0.74. Prepare the journal entries for the above.

Q2. Jameson Ltd purchased goods on credit from a European supplier costing Euros 80,000 on 29th May 2020 when the exchange rate was A$1 = O.78 Euros. At 30th June 2020, its balance date . the exchange rate was A$1 = 0.79 Euros . Jameson Ltd paid the European supplier on 5th July 2020 when the exchange rate was A$1= 0.76 Euros. Prepare the journal entries for the above.

Q3. Timson Ltd sold goods on credit on 5th June 2020 to a New Zealand company for $NZ 45,000 when the exchange rate was A$1 = NZ$1.06 . On 30th June 2020, balance date . the exchange rate was A$1 = NZ$1.11 . The New Zealand company paid Timson Ltd on 3rd July 2020 when the exchange rate was A$1 = NZ $1.08. Prepare the journal entries for the above.

Q4. If company A, an Australian company, acquires a beneficial interest( becomes the Holding company) of an overseas entity in NZ ,company B, in which currency will it report its consolidated accounts, which includes its interest in the NZ company, company B

Q5. Will a company use the same exchange rate when translating, Assets, Liabilities, Revenues and Expenses? Explain.