On 20 June, Melbourne Ltd acquires equipment on credit terms from a New Zealand supplier,...
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On 20 June, Melbourne Ltd acquires equipment on credit terms from a New Zealand supplier, Queenstown Ltd, for NZ$180 000. The exchange rate at 20 June was NZ$1.00 = A$0.85. On 30 June the exchange rate is NZ$1.00 = A$0.80. Melbourne Ltd pays Queenstown Ltd in full on 14 July when the exchange rate is NZ$1.00 = A$0.82.
A journal entry recorded by Melbourne Ltd for the purchase of the equipment on 20 June is:
Select one:
Dr Equipment A$147 600; Cr Payable to Queenstown Ltd A$147 600
Dr Equipment A$144 000; Cr Payable to Queenstown Ltd A$144 000
Dr Equipment A$153 000; Cr Payable to Queenstown Ltd A$153 000
Dr Equipment A$180 000; Cr Cash A$180 000
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