Reference no: EM133017960

Question - On 1 July 2021 Brown Ltd, an Australian company, provides some consulting advice to the California Tropicana Company, an American organisation for an agreed fee of US$150,000. The amount is paid into the American bank account of Brown Ltd on 1 July 2021. Brown Ltd has left these monies in the American bank account, which pays interest at a rate of 5% per annum. Brown Ltd will collect this money from their American bank account on 30 June 2023. The relevant exchange rates are as follows: On 1July 2021 A$1.00 = US$.70 and on 30 June 2023 A$1.00 = US$.80

Provide the following: Show all the journal entries (as discussed above) in the financial records of Brown Ltd for the year ended 30 June 2023 (to simplify your response the concept of time-value of money will be ignored in this instance). Show all workings.

On 1 July 2021 Brown Ltd, an Australian company, provides some consulting advice to the California Tropicana Company, an American organisation for an agreed fee of US$150,000. The amount is paid into the American bank account of Brown Ltd on 1 July 2021. Brown Ltd has left these monies in the American bank account, which pays interest at a rate of 5% per annum. Brown Ltd will collect this money from their American bank account on 30 June 2023. The relevant exchange rates are as follows: On 1July 2021 A$1.00 = US$.70 and on 30 June 2023 A$1.00 = US$.80

Provide the following: Show all the journal entries (as discussed above) in the financial records of Brown Ltd for the year ended 30 June 2023 (to simplify your response the concept of time-value of money will be ignored in this instance). Show all workings.