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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$)?

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$)?

FINANCIAL ACCOUNTING
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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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$0.62 Prepare the relevant journal entries that are required in Corona Ltd's books for 10 July 2019 and 30 June 2020 in accordance with AASB 121 (rounded to the nearest whole AU$)?
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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