Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:DateEventSpot rate15 March 2019Order £300,000 of inventoryA$1.00 = £0.3711 May 2019The purchase takes place as inventory shipped to Fujitsu Ltd (FOB)A$1.00 = £0.4130 June 2019End of the financial yearA$1.00 = £0.4302 July 2019Inventory arrives at the warehouseA$1.00 = £0.4214 August 2019Payment of £300,000 to supplierA$1.00 = £0.39 Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to the nearest dollar). b) What is a qualifying asset? Provide two (2) examples.

Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:DateEventSpot rate15 March 2019Order £300,000 of inventoryA$1.00 = £0.3711 May 2019The purchase takes place as inventory shipped to Fujitsu Ltd (FOB)A$1.00 = £0.4130 June 2019End of the financial yearA$1.00 = £0.4302 July 2019Inventory arrives at the warehouseA$1.00 = £0.4214 August 2019Payment of £300,000 to supplierA$1.00 = £0.39 Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to the nearest dollar). b) What is a qualifying asset? Provide two (2) examples.

Name: Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company
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Description: Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:DateEventSpot rate15 March 2019Order £300,000 of inventoryA$1.00 = £0.3711 May 2019The purchase takes place a

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 21E: Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and...

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Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spotrates at each date are shown as follows:Date Event Spot rate15 March 2019 Order £300,000 of inventory A$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd(FOB)A$1.00 = £0.4130 June 2019 End of financial year A$1.00 = £0.4302 July 2019 Inventory arrives at warehouse A$1.00 = £0.4214 August 2019 Payment of £300,000 to supplier A$1.00 = £0.39Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to thenearest dollar). Show your work.b) What is a qualifying asset? Provide two (2) examples.
Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spotrates at each date are shown as follows:Date Event Spot rate15 March 2019 Order £300,000 of inventory A$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd(FOB)A$1.00 = £0.4130 June 2019 End of financial year A$1.00 = £0.4302 July 2019 Inventory arrives at warehouse A$1.00 = £0.4214 August 2019 Payment of £300,000 to supplier A$1.00 = £0.39Required:a) Prepare appropriate journal entries for each relevant event. (Round amounts to thenearest dollar). Show your working.b) What is a qualifying asset? Provide two (2) example