On 10 July 2019 Corona Ltd enters into an arrangement with a Barclays bank in US to borrow US$900 000. The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent. The exchange rate information is: Date 10 July 2019 30 June 2020 Exchange rate AU$1 = US$0.78 AU$1 = US$0.62 Prepare the relevant journal entries that are required in Corona Ltd's books for 10 July 2019 and 30 June 2020 in accordance with AASB 121 (rounded to the nearest whole AU$)?
On 10 July 2019 Corona Ltd enters into an arrangement with a Barclays bank in US to borrow US$900 000. The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent. The exchange rate information is: Date 10 July 2019 30 June 2020 Exchange rate AU$1 = US$0.78 AU$1 = US$0.62 Prepare the relevant journal entries that are required in Corona Ltd's books for 10 July 2019 and 30 June 2020 in accordance with AASB 121 (rounded to the nearest whole AU$)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 10 July 2019 Corona Ltd enters into
an arrangement with a Barclays bank
in US to borrow US$900 000. The
term of the loan is 3 years with interest
payable annually in arrears on 30 June
at the rate of 10 per cent. The
exchange rate information is:
Date
10 July 2019
30 June 2020
Exchange rate
AU$1 = US$0.78
AU$1 = US$0.62
Prepare the relevant journal entries
that are required in Corona Ltd's books
for 10 July 2019 and 30 June 2020 in
accordance with AASB 121 (rounded to
the nearest whole AU$)?
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