On 1 July 2013 Kanga Consultants Ltd completes a contract to provide advice on the installation of a networked computer system to a company in the US.The client pays the fee of US$500 000 into Kanga Consultants' US bank account on that date.The bank pays interest of 8 per cent annually on 30 June.The exchange rate information is: $$\begin{array} { | l | l | }
\hline 1 \text { July } 2013 & \text { AS1 } = \text { US\$0.56 } \
\hline 30 \text { June } 2014 & \text { AS2} = \text { US\$0.62 } \
\hline
\end{array}$$ What journal entries are required in Kanga Consultants Ltd's books for 1 July 2013 and 30 June 2014 in accordance with AASB 1012 (rounded to the nearest whole A$)?

Question

On 1 July 2013 Kanga Consultants Ltd completes a contract to provide advice on the installation of a networked computer system to a company in the US.The client pays the fee of US$500 000 into Kanga Consultants' US bank account on that date.The bank pays interest of 8 per cent annually on 30 June.The exchange rate information is: $$\begin{array} { | l | l | } 
\hline 1 \text { July } 2013 & \text { AS1 } = \text { US\$0.56 } \
\hline 30 \text { June } 2014 & \text { AS2} = \text { US\$0.62 } \
\hline
\end{array}$$ What journal entries are required in Kanga Consultants Ltd's books for 1 July 2013 and 30 June 2014 in accordance with AASB 1012 (rounded to the nearest whole A$)?

Quizplus · Accepted Answer

The Answer of On 1 July 2013 Kanga Consultants Ltd completes a contract to provide advice on the installation of a networked computer system to a company in the US.The client pays the fee of US$500 000 into Kanga Consultants' US bank account on that date.The bank pays interest of 8 per cent annually on 30 June.The exchange rate information is: $$\begin{array} { | l | l | } 
\hline 1 \text { July } 2013 & \text { AS1 } = \text { US\$0.56 } \
\hline 30 \text { June } 2014 & \text { AS2} = \text { US\$0.62 } \
\hline
\end{array}$$ What journal entries are required in Kanga Consultants Ltd's books for 1 July 2013 and 30 June 2014 in accordance with AASB 1012 (rounded to the nearest whole A$)?

On 1 July 2013 Kanga Consultants Ltd Completes a Contract