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On 20 July 2020, Corona Ltd an Australian based company provides some management consulting service to a company in Unites States of America called XYZ Incorporation for an agreed fee of US$1.5 million. The amount is paid into the US bank account of Corona Ltd on Page 4 of 10 20 July 2020. Corona Ltd elects to leave the amount in the US bank account, which pays interest each year on 30 June at a rate of five per cent. The relevant exchange rates are: 20 July 2020 A$1.00 = US$0.75 30 June 2021 A$1.00 = US$0.78
Required:
Problem 1: Provide the journal entries that would need to be made in the books of Corona Ltd to account for the above transaction for the year ending 30 June 2021.
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