Purchase transaction for the year ending 30 june 2021

Assignment Help Financial Accounting

Reference no: EM133496378

Case: On 5 June 2021, TTY Ltd acquired goods on credit from a supplier in London. The goods will be shipped FOB London on 5 June 2021. The cost of the goods is UK£450 000, and the debt remains unpaid on 30 June 2021. On 5 June 2021, the exchange rate was A$1.00 = UK£0.45. On 30 June 2021, it is A$1.00 = UK£0.42. Hence the value of the Australian dollar has decreased relative to the UK pound. TTY Ltd.'s reporting date is 30 June.

Required:

Question 1: Provide the accounting entries necessary for the above purchase transaction for the year ending 30 June 2021.

Question 2: In your own words, provide a rationale for why it is necessary to convert foreign currency for financial reporting

Reference no: EM133496378

Questions Cloud

Constitution and challenged law : How severe a conflict between the Constitution and a challenged law is required before a court is justified in declaring legislation unconstitutional?

Identified through your 5 whys or fishbone diagram : Whys or Fishbone diagram, that can be turned into "butterfly effects" or potential large-scale strategic opportunities for your organization

Thinking about the concept of intersectionality : Thinking about the concept of intersectionality, Which part of your identity makes you feel empowered? Explain.

Calculate the appropriate ratios expressed : Calculate the appropriate ratios expressed to two decimal places and provide an interpretation of your answers for each of the following over the two-year

Purchase transaction for the year ending 30 june 2021 : Provide the accounting entries necessary for the above purchase transaction for the year ending 30 June 2021 - convert foreign currency for financial reporting

Chronic disease self-management education : Make a statement of administering a Chronic Disease Self-Management Education (CDSME) grant for the Administration for Community Living organization.

What does liberty mean to you : What does liberty mean to you? How does the concept of liberty tie into the federal system created by the founders of the United States?

Trembling thug special counsel in golf club speech : Summarize by describing story on Independent News "Trump indictment - live: Trump downplays charges, insults trembling thug special counsel in golf club speech

Analyze the specific ways in which filmmaking techniques : ENG 225- Analyze specific ways in which filmmaking techniques, consistent themes and storytelling distinguish your chosen director as auteur among their peers.

User Account

All Pages