On 1 January 20X4 (transaction date), Jessey Ltd a South African company bought a machine from an American company for $100 000. Jessey Ltd settled the debt on 31 March 20X5. The relevant exchange rates are as follows: (Rand: Dollar) 1 January 20X4 R6.50: = $1 31 March 20X4 R6.30: = $1 31 December 20X4 R6.60: = $1 31 March 20X5 R6.40: = $1 31 December 20X5 R6.20: = $1 The machine is depreciated to a R20 000 residual value over 5 years using the straight-line method. The recoverable amount calculated on 31 December 20X5 was R388 000. Required: 1. Show all the South African’s entity journals for the ended 31 December 20X4 and 20X5.
On 1 January 20X4 (transaction date), Jessey Ltd a South African company bought a machine from an American company for $100 000. Jessey Ltd settled the debt on 31 March 20X5. The relevant exchange rates are as follows: (Rand: Dollar) 1 January 20X4 R6.50: = $1 31 March 20X4 R6.30: = $1 31 December 20X4 R6.60: = $1 31 March 20X5 R6.40: = $1 31 December 20X5 R6.20: = $1 The machine is depreciated to a R20 000 residual value over 5 years using the straight-line method. The recoverable amount calculated on 31 December 20X5 was R388 000. Required: 1. Show all the South African’s entity journals for the ended 31 December 20X4 and 20X5.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 1 January 20X4 (transaction date), Jessey Ltd a South African company bought a machine from an American company for $100 000. Jessey Ltd settled the debt on 31 March 20X5.
The relevant exchange rates are as follows: (Rand: Dollar)
1 January 20X4 R6.50: = $1
31 March 20X4 R6.30: = $1
31 December 20X4 R6.60: = $1
31 March 20X5 R6.40: = $1
31 December 20X5 R6.20: = $1
The machine is
Required:
1. Show all the South African’s entity journals for the ended 31 December 20X4 and 20X5.
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