Show the journal entries to show the effects of the above transactions. Note: Round to the nearest RM.
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Q2. (a) Setia Bhd purchased a plant from a foreign entity for USD 18 million on 31 May 2020 when the exchange rate was USD2.00 to RM1. The entity also sells goods to a foreign customer for USD10.5 million on 30 September 2020, when the exchange rate was USD1.75 to RM1. At the entity’s year end of 31 December 2020, both amounts are still outstanding and have not been paid. The closing exchange rate was USD1.50 to RM1.
Required:
(ii) Show the
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- 2.Jameson Ltd purchased goods on credit from a European supplier costing Euros 80,000 on 29th May 2020 when the exchange rate was A$1 = O.78 Euros. At 30th June 2020, its balance date . the exchange rate was A$1 = 0.79 Euros . Jameson Ltd paid the European supplier on 5th July 2020 when the exchange rate was A$1= 0.76 Euros Required: Prepare the journal entries for the above1 . PL Co purchased goods on credit from a US supplier costing $US 225,000 on 5th June 2020 when the exchange rate was A$1 = US0.69 . On 30 June 2020, balance date , the exchange rate was A$1 = US0.72 . PL Co paid the US supplier on 7th July 2020 when the exchange rate was A$1 = 0.74. Required : Prepare the journal entries for the aboveHonesty Company sold goods on account to a foreign company for 80,200 euros on October 20, 2022. The date of invoice is October 25, 2022 and the payment is due on January 29, 2023. Exchange rates were as follows (see image below). Answer the following subquestion(3): a. How much is the foreign exchange gain (loss) to be reported in 2022? ____________ thanks!
- 1. On October 1, 2021, Arvene Corp. purchased goods from US based corporation worth 50,750 US dollars. Payment is due in 120 days on January 30, 2022. In view of the transaction, Arvene Corp. entered into a forward contract to buy 50,750 US dollars from PNB in 120 days. The relevant rates are as follows: 10/01/21 12/31/21 01/30/22 Spot rate P 53 P 55 P 53.50 Forward rate 54 56.50 55 How much is the net forex loss on settlement date?3.Timson Ltd sold goods on credit on 5th June 2020 to a New Zealand company for $NZ 45,000 when the exchange rate was A$1 = NZ$1.06 . On 30th June 2020, balance date . the exchange rate was A$1 = NZ$1.11 . The New Zealand company paid Timson Ltd on 3rd July 2020 when the exchange rate was A$1 = NZ $1.08. Required: Prepare the journal entries for the aboveOn 15 May 2020 Penn Ltd, an Australian company with functional currency of Australian dollars acquires goods on credit from a supplier in Cardiff. The goods are shipped FOB Cardiff on 15 May 2020. The cost of the goods is UK200,000 and the debt remains unpaid at 30 June 2020. On 15 May 2020 the exchange rate is A$1.00 = UK0.56. On 30 June 2020 it is A$1.00 = UK0.53. Penn Ltd's reporting date is 30 June. Provide the accounting entries necessary to account for the above purchase transaction for the year ending 30 June 2020.
- (a) Raja Bhd is a public company, and its functional currency is the Ringgit Malaysia (RM). Recently it has purchased a foreign subsidiary, PT Mahkota, whereby the functional currency of the entity is the Rupiah. Raja Bhd purchased 80% of the equity shares of PT Mahkota on 1 October 2021 for 172 million Rupiah. The carrying amount of the net assets of PT Mahkota at that date was 180 million Rupiah. The fair value of the net assets at that date was 200 million Rupiah. At the year end on 31 December 2021, the goodwill was tested for impairment, and this review indicated that it had been impaired by 3.6 million Rupiah.On December 1, 2022, GAZA Company purchased Equipment from Ispanya by 100,000 Euro payable on March 31, 2023. At the same time GAZA entered into a 120-day forward contract with :ALQUDS Bank to purchase 100,000 Euro in March 31, 2023 to hedge risk of changes in exchange rates. GAZA's fiscal year ends on December 31. The direct exchange rates follow Date Spot Rate Forward Rate December 1, 20X1 December 31, 20X1 0.600 0.610 0.609 0.612 March 31, 20X2 0.602 Required: Prepare all journal entries for GAZA1. An entity acquired all the share capital of a foreign entity at a consideration of 9 million baht on June 30, 2020. The fair value of the net assets of the foreign entity at that date was 6 million baht. The functional currency of the entity is the peso. The financial year-end of the entity is December 31, 2020. The exchange rates at June 30, 2020, and December 31, 2020, were 1.5 baht = P1 and 2 baht = P1 respectively.What figures for goodwill should be included in the financial statements for the year ended December 31, 2020?a. 2,000,000b. 1,500,000c. 3,000,000d. 3,500,000 2. Morny Corporation sold equipment to its 80% owned subsidiary, Morrie Corporaiton on January 1, 2020. Morny sold the equipment for P110,000 when its book value was P85,000 and it had a 5-year remaining useful life with no expected salvage value. Separate balance sheets for Morny and Morrie included the following equipment and accumulated depreciation amounts on December 31, 2020:Morny MorrieEquipment P750,000…
- Assume that Gilligan Ltd enters into a contract to buy inventory from an overseas supplier. On1 February 2023 it acquires the material at a cost of US$500,000 payable in two months’ time.The exchange rate at the time is A$1 = US$1.15. The actual debt is considered to be a tradepayable and is a primary financial instrument. The exchange rate on 1 April 2023 is A$1 =US$1.09.Required:(a) As the debt is payable in two months’ time describe the potential risk to Gilligan Ltd.(b) Assume that McCoy Ltd is concerned about possible adverse exchange ratemovements, what action could the company take?Accounting a) On January 1, 2022, Dymaxium Inc. a Canadian company, sold Alberta beef to a foreign company for FC$200,000, with payment due on March 1, 2008. ON the same date, Dymaxium entered into a forward contract with the bank to sell the foreign currency (FC) it will receive on March 1, 2022 at a rate of FC1=C$1.16. The forward contract was designed as a fair value hedge of the FC receivable. On March 1, 2022, Dymaxium received the payment from the foreign company and settled the forward contract with the bank. Spot exchange rates were as follows: January 1, 2022 FC1 = C$1.18 March 1, 2022 FC1 = C$1.19 Required Prepare journal entries to record the above transactions 1Dell Bhd bought a plant from an Australian company for AUD350,000 on 1 April 2021 when the exchange rate was RM1:AUD 0.3344. Dell Bhd paid AUD100,000 on 1 June 2021 when the exchange rate was RM1:AUD0.3322. The balance was due on 1 June 2022. The exchange rate on 31 December 2021 was RM1:AUD0.3257. The estimated life of the plant was 5 years. Dell Bhd adopts the cost model and uses straight line method for depreciation of its property, plant and equipment based on a monthly basis. The functional currency of Dell Bhd is RM. Required: Show the extracts of the Statement of Profit or Loss for the year ended 31 December 2021 and the Statement of Financial Position as at that date for Dell Bhd to show the effects of the above transactions.
