On 1 July 2020 Zara Ltd enters an arrangement with a US bank-American Express Bank-to borrow US$900,000. The term of the loan is 3 years with interest payable as June at the rate of 8% percent per year. The exchange rate information is given below: AS US 1 July 2020 0.45 30 June 2021 0.55 Required: What journal entries are required in Zara Ltd books for 1 July 2020 and 30 June 2021 in accordance with AASB 121 (rounded to the nearest whole AS)- For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

On 1 July 2020 Zara Ltd enters an arrangement with a US bank-American Express Bank-to borrow US$900,000. The term of the loan is 3 years with interest payable as June at the rate of 8% percent per year. The exchange rate information is given below: AS US 1 July 2020 0.45 30 June 2021 0.55 Required: What journal entries are required in Zara Ltd books for 1 July 2020 and 30 June 2021 in accordance with AASB 121 (rounded to the nearest whole AS)- For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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