On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates:

What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A)?

Question

On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates:

What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ?

What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A)?

Quizplus · Accepted Answer

The Answer of On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates:

What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A)?

On 1 February 2004, Morinda Ltd Completes a Binding Agreement