Clementi Pte Ltd (Clementi), whose functional currency is Singapore Dollar (S$), operates a S$ bank account. As part of its expansion plan into the United States, the following transactions were entered into during the financial year ended 31 December 20x7: 5 January: Transferred S$250,000 into a new bank account denominated in US Dollar (US$). This bank account was used to pay/receive all transactions denominated in US$. 13 February: Purchased 10 units of Product ZUM-88 for US$50,000 and settled in cash. 25 March: Purchased another 25 units of Product ZUM-88 for US$130,000 on credit terms. • 3 April: Paid US$100,000 to creditors. • 8 May: Sold 5 units of Product ZUM-88 for US$45,000 and received cash. • 20 August: Paid US$20,000 to creditors. • 2 September: Sold 13 units of Product ZUM-88 for US$158,000 on credit terms. Assume the net realisable value of inventories is above the cost of inventories at the end of FY20x7. There was no inventory, US$ bank, trade receivables and trade payables balances at start of the financial year. Foreign currency monetary account balances are revalued at the end of the financial year. Ignore the effects of income tax arising from these transactions and events. (a) Record the journal entries for Clementi from 1 January 20x7 to 31 December 20x7 in accordance with SFRS(I) 1-21 The Effects of Changes in Foreign Exchange Rates and SFRS(1) 1-2 Inventories. Show all necessary workings and round to nearest dollar. • 30 October: Received US$79,000 from customers. Exchange rates: Date US$/S$ 1 January 1.330 5 January 1.380 13 February 1.320 25 March 1.290 3 April 1.340 8 May 1.280 20 August 1.310 2 September 1.370 30 October 1.390 31 December 1.330 Clementi maintains a perpetual inventory system and the FIFO cost formula. (b) Explain who are the users and what are the objectives of general-purpose financial statements.
Clementi Pte Ltd (Clementi), whose functional currency is Singapore Dollar (S$), operates a S$ bank account. As part of its expansion plan into the United States, the following transactions were entered into during the financial year ended 31 December 20x7: 5 January: Transferred S$250,000 into a new bank account denominated in US Dollar (US$). This bank account was used to pay/receive all transactions denominated in US$. 13 February: Purchased 10 units of Product ZUM-88 for US$50,000 and settled in cash. 25 March: Purchased another 25 units of Product ZUM-88 for US$130,000 on credit terms. • 3 April: Paid US$100,000 to creditors. • 8 May: Sold 5 units of Product ZUM-88 for US$45,000 and received cash. • 20 August: Paid US$20,000 to creditors. • 2 September: Sold 13 units of Product ZUM-88 for US$158,000 on credit terms. Assume the net realisable value of inventories is above the cost of inventories at the end of FY20x7. There was no inventory, US$ bank, trade receivables and trade payables balances at start of the financial year. Foreign currency monetary account balances are revalued at the end of the financial year. Ignore the effects of income tax arising from these transactions and events. (a) Record the journal entries for Clementi from 1 January 20x7 to 31 December 20x7 in accordance with SFRS(I) 1-21 The Effects of Changes in Foreign Exchange Rates and SFRS(1) 1-2 Inventories. Show all necessary workings and round to nearest dollar. • 30 October: Received US$79,000 from customers. Exchange rates: Date US$/S$ 1 January 1.330 5 January 1.380 13 February 1.320 25 March 1.290 3 April 1.340 8 May 1.280 20 August 1.310 2 September 1.370 30 October 1.390 31 December 1.330 Clementi maintains a perpetual inventory system and the FIFO cost formula. (b) Explain who are the users and what are the objectives of general-purpose financial statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Clementi Pte Ltd (Clementi), whose functional currency is Singapore Dollar (S$),
operates a S$ bank account. As part of its expansion plan into the United States, the
following transactions were entered into during the financial year ended 31 December
20x7:
5 January: Transferred S$250,000 into a new bank account denominated in US
Dollar (US$). This bank account was used to pay/receive all transactions
denominated in US$.
13 February: Purchased 10 units of Product ZUM-88 for US$50,000 and settled in
cash.
25 March: Purchased another 25 units of Product ZUM-88 for US$130,000 on
credit terms.
•
3 April: Paid US$100,000 to creditors.
•
8 May: Sold 5 units of Product ZUM-88 for US$45,000 and received cash.
•
20 August: Paid US$20,000 to creditors.
•
2 September: Sold 13 units of Product ZUM-88 for US$158,000 on credit terms.
Assume the net realisable value of inventories is above the cost of inventories at the
end of FY20x7. There was no inventory, US$ bank, trade receivables and trade
payables balances at start of the financial year. Foreign currency monetary account
balances are revalued at the end of the financial year. Ignore the effects of income tax
arising from these transactions and events.
(a) Record the journal entries for Clementi from 1 January 20x7 to
31 December 20x7 in accordance with SFRS(I) 1-21 The Effects
of Changes in Foreign Exchange Rates and SFRS(1) 1-2
Inventories. Show all necessary workings and round to nearest
dollar.
•
30 October: Received US$79,000 from customers.
Exchange rates:
Date
US$/S$
1 January
1.330
5 January
1.380
13 February
1.320
25 March
1.290
3 April
1.340
8 May
1.280
20 August
1.310
2 September
1.370
30 October
1.390
31 December
1.330
Clementi maintains a perpetual inventory system and the FIFO cost formula.
(b) Explain who are the users and what are the objectives of
general-purpose financial statements.
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