On 1 May 2015 Harry's Plastics Ltd acquires goods from a supplier in the US.The goods are shipped f.o.b.from the United States on 1 May 2015.The cost of the goods is US$1 500 000.The amount has not been paid at period end,30 June 2015.Exchange rates are as follows: $$\begin{array} { | l | l | }
\hline 1 \text { May } 2015 & \text { A\$1.00 } = \text { US\$0.59 } \
\hline 30 \text { June } 2015 & \text { A\$1.00 = US\$0.52 } \
\hline
\end{array}$$ Harry's Plastics Ltd uses a perpetual inventory system.
What entries are required at transaction date and reporting date (rounded to the nearest whole A$)?

Question

On 1 May 2015 Harry's Plastics Ltd acquires goods from a supplier in the US.The goods are shipped f.o.b.from the United States on 1 May 2015.The cost of the goods is US$1 500 000.The amount has not been paid at period end,30 June 2015.Exchange rates are as follows: $$\begin{array} { | l | l | } 
\hline 1 \text { May } 2015 & \text { A\$1.00 } = \text { US\$0.59 } \
\hline 30 \text { June } 2015 & \text { A\$1.00 = US\$0.52 } \
\hline
\end{array}$$ Harry's Plastics Ltd uses a perpetual inventory system.
What entries are required at transaction date and reporting date (rounded to the nearest whole A$)?

Quizplus · Accepted Answer

The Answer of On 1 May 2015 Harry's Plastics Ltd acquires goods from a supplier in the US.The goods are shipped f.o.b.from the United States on 1 May 2015.The cost of the goods is US$1 500 000.The amount has not been paid at period end,30 June 2015.Exchange rates are as follows: $$\begin{array} { | l | l | } 
\hline 1 \text { May } 2015 & \text { A\$1.00 } = \text { US\$0.59 } \
\hline 30 \text { June } 2015 & \text { A\$1.00 = US\$0.52 } \
\hline
\end{array}$$ Harry's Plastics Ltd uses a perpetual inventory system.
What entries are required at transaction date and reporting date (rounded to the nearest whole A$)?

On 1 May 2015 Harry's Plastics Ltd Acquires Goods from a Supplier