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On 1 February 2004, Morinda Ltd Completes a Binding Agreement

Question 15

Multiple Choice

On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates:
On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates: What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ?


A) On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates: What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
B) On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates: What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
C) On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates: What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
D) On 1 February 2004, Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany. The cost of the equipment is €150,000. The construction of the lift is completed on 30 May 2004, and it is considered to be a qualifying asset according to AASB 123. The amount owing has not been paid by reporting date 30 June 2004. The following is information about the exchange rates: What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole $A) ? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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