Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - On 5th June, 2018 Sydney Ltd acquires goods on credit from a supplier in London. The goods are shipped FOB London on 5th June, 2018. The cost of the goods is UK£500 000 and the debt remains unpaid as at 30th June, 2018. On 5th June, 2018 the exchange rate is A$1.00 = UK£0.43. On 30th June, 2018 it is A$1.00 = UK£0.40. Hence, the value of the Australian dollar has decreased relative to the UK pound. Sydney Ltd.'s reporting date is the 30th of June.
Required -
(a) Provide the accounting entries necessary to account for the above purchase transaction for the year ending 30th June, 2018.
(b) In your opinion, why do companies need to translate foreign currency transactions into local currency?
(c) Some current assets, such as inventory, are required from an overseas supplier with the debt denominated in a foreign currency. In the absence of a hedge arrangement, if the exchange rate moves against the Australian dollar while the debt is outstanding, how should the movement be treated for accounting purposes? Provide a full explanation.
Lines, Inc. applies overhead at the standard rate of $20/units, based on anticipated production of 2,000 units. If Line's actual overhead is $41,000, the overhead volume variance is
Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.
Bank reconciliation and adjusting entries; cash and cash equivalents [Appendix 7A] The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2016, balance of $14,732.37. What amount would MSI report as cash an..
Record the transactions in the appropriate journals. $2,500 was paid to the solicitors for the formation of the company on 2 June 2015.
Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the number of units of the f..
LeCompte Learning Solutions, What is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure?
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.
increase assets and decrease stockholders equity, increase assets and increase liabilities
If Annette had been younger than age fifty-nine, which alternative would have allowed her to take distributions without incurring a tax penalty?
627B2 Financial Accounting & Management Accounting - Prepare a statement of financial position as at 31 March 2017 - Prepare the relevant journal entries
How much was Nathan Company's operating income for the year? Cash collections from customers for services yet to be provided totaled $88,000
Falcon Company produces and sells a single product. The company would like to project its net operating income (NOI) for the coming year assuming an increase in unit sales but with price, variable cost per unit, and total fixed cost remaining the sam..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd