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Question 2 Journalize the following transactions: Q8 Corporation, a Kuwait-based company (Functional currency...

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Accounting

Question 2
Journalize the following transactions:
Q8 Corporation, a Kuwait-based company (Functional currency the KWD), had the following transactions with its Bahraini subsidiary (Functional currency the BHD):
1. January 1,2020: Sale of equipment (E1) for 100,000 KWD on account. Credit terms: Full payment in 6 months. Interest: 12% per annum. (10 points)
2. July 1,2020: Sale of additional equipment (E2) for 200,000 KWD payment received by electronic transfer (5 points)
3. December 31,2020: What would be the amount of depreciation expense in the consolidated financial statement for the Equipment (E1 & E2). Use straight-line, no residual value, useful life 10 years. Indicate which method you are using. (5 points)
Additional information:
Exchange rates for the KWD against the BHD
January 1,2020: 1KWD =1.2290 BHD; July 1,2020: 1KWD =1.24000 BHD;
June 30,2020: 1KWD =1.2420 BHD; December 31,2020: 1KWD =1.2200 BHD.

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