Morrison Ltd, an Australian company purchased inventory from Trudeau Co which is a Canadian company. The following information is relevant to a recent acquisition of inventory for C$458,400 pursuant to a contract with terms including FOB shipping. Event table Date Event Exchange rate 1A$ = C$ 25-1-2021 Inventory shipped C$0.97 15-2-2021 Inventory delivered C$0.98 30-4-2021 Cash payment of C$458,400 to Trudeau Co C$0.95 30-6-2021 End of reporting period C$0.93 Prepare the necessary entries for Morrison Ltd to record the above transactions for the year ended 30-June-2021
Morrison Ltd, an Australian company purchased inventory from Trudeau Co which is a Canadian company. The following information is relevant to a recent acquisition of inventory for C$458,400 pursuant to a contract with terms including FOB shipping. Event table Date Event Exchange rate 1A$ = C$ 25-1-2021 Inventory shipped C$0.97 15-2-2021 Inventory delivered C$0.98 30-4-2021 Cash payment of C$458,400 to Trudeau Co C$0.95 30-6-2021 End of reporting period C$0.93 Prepare the necessary entries for Morrison Ltd to record the above transactions for the year ended 30-June-2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Morrison Ltd, an Australian company purchased inventory from Trudeau Co which is a | ||
| Canadian company. The following information is relevant to a recent acquisition of inventory for | ||
| C$458,400 pursuant to a contract with terms including FOB shipping. | ||
| Event table | ||
| Date | Event | Exchange rate |
| 1A$ = C$ | ||
| 25-1-2021 | Inventory shipped | C$0.97 |
| 15-2-2021 | Inventory delivered | C$0.98 |
| 30-4-2021 | Cash payment of C$458,400 to Trudeau Co | C$0.95 |
| 30-6-2021 | End of reporting period | C$0.93 |
| Prepare the necessary entries for Morrison Ltd to record the above transactions for the year | ||
| ended 30-June-2021 | ||
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