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)?

Question

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)?

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The Answer of 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)?

Emu Exports Ltd Sold Products to a New Zealand Company