Solved

Emu Exports Ltd Sold Products to a New Zealand Company

Question 45

Multiple Choice

Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows:
Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows: What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ?


A) Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows: What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
B) Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows: What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
C) Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows: What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
D) Emu Exports Ltd sold products to a New Zealand company. The sales contract was denominated in $NZ. On 1 October 2005, $NZ500,000 worth of products were sold with the terms f.o.b. shipping point and payment due 30 December 2005. A forward-exchange contract in which the bank agrees to purchase $NZ300,000 from Emu Exports on 30 December 2005 is entered into on 1 November 2005. The forward-exchange rate is $A1 = $NZ1.25. Other exchange rates are as follows: What are the journal entries to record the above transactions from 1 October through to 30 December 2005 in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q21: There are two broad categories of foreign

Q43: The following items are in the financial

Q43: Which of the following is not a

Q44: On 1 July 2005 Jarrets Ltd borrows

Q44: AASB 123 Borrowing Costs defines a qualifying

Q45: Which of the following statements is correct

Q52: Which of the following items is not

Q53: In terms of retrospectively assessing hedge effectiveness,which

Q54: Which of the following items is within

Q55: Exchange differences recognised as borrowing costs and

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents