Two companies enter into loan agreements on 1 March 2003. On that date they also enter into an agreement to swap the loans. The details for each company and loan are:

Exchange rates:
1 March 2003 $A1.00 = £stg0.3012
30 June 2003 $A1.00 = £stg0.2980
The balance date for both companies is 30 June 2003. What are the accounting entries in the books of Boris Ltd on 1 March and 30 June 2003?
A.

B.

C.

D.

E. None of the given answers.

Question

Two companies enter into loan agreements on 1 March 2003. On that date they also enter into an agreement to swap the loans. The details for each company and loan are:
  
Exchange rates:
1 March 2003 $A1.00 = £stg0.3012
30 June 2003 $A1.00 = £stg0.2980
The balance date for both companies is 30 June 2003. What are the accounting entries in the books of Boris Ltd on 1 March and 30 June 2003? 
A.
  
B.
  
C.
  
D.
  
E. None of the given answers.

Quizplus · Accepted Answer

The Answer of Two companies enter into loan agreements on 1 March 2003. On that date they also enter into an agreement to swap the loans. The details for each company and loan are:
  
Exchange rates:
1 March 2003 $A1.00 = £stg0.3012
30 June 2003 $A1.00 = £stg0.2980
The balance date for both companies is 30 June 2003. What are the accounting entries in the books of Boris Ltd on 1 March and 30 June 2003? 
A.
  
B.
  
C.
  
D.
  
E. None of the given answers.

Two Companies Enter into Loan Agreements on 1 March 2003