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 2019 Order £300,000 of inventoryA$1.00 = £0.3711 May 2019 Purchase takes place as inventory shipped to Fujitsu Ltd (FOB)A$1.00 = £0.41 30 June 2019End of financial yearA$1.00 = £0.4302 July 2019Inventory arrives at warehouseA$1.00 = £0.4214 August 2019Payment of £300,000 to supplierA$1.00 = £0.39 Required:Prepare appropriate journal entries for each relevant event. (Round amounts to the nearest dollar). Show your working.What is a qualifying asset? Provide two (2) examples.

Name: Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company
Uploaded: 2024-03-20T06:32:37.000Z
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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 2019 Order £300,000 of inventoryA$1.00 = £0.3711 May 2019 Purchase takes place

Journal entry is recording the business transactions into the books of accounts of the entity and it…

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Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 25E

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Fujitsu Ltd purchases inventory from DFO Ltd, a listed British company. Relevant events and the spot rates at each date are shown as follows:

Date	Event	Spot rate
15 March 2019	Order £300,000 of inventory	A$1.00 = £0.37
11 May 2019	Purchase takes place as inventory shipped to Fujitsu Ltd (FOB)	A$1.00 = £0.41
30 June 2019	End of financial year	A$1.00 = £0.43
02 July 2019	Inventory arrives at warehouse	A$1.00 = £0.42
14 August 2019	Payment of £300,000 to supplier	A$1.00 = £0.39

Required:

Prepare appropriate journal entries for each relevant event. (Round amounts to the nearest dollar). Show your working.
What is a qualifying asset? Provide two (2) examples.

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