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On 1 July 2014 Waugh Ltd Enters into an Arrangement

Question 13

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On 1 July 2014 Waugh Ltd enters into an arrangement with a US bank-Big Bank-to borrow US$900 000.The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent.The exchange rate information is: 1 July 2014 A$1 = US$0.45 30 June 2015 A$1 = US$0.55 \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\\hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\\hline\end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ?


A)
On 1 July 2014 Waugh Ltd enters into an arrangement with a US bank-Big Bank-to borrow US$900 000.The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent.The exchange rate information is: \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\ \hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\ \hline \end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)
B)
On 1 July 2014 Waugh Ltd enters into an arrangement with a US bank-Big Bank-to borrow US$900 000.The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent.The exchange rate information is: \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\ \hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\ \hline \end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)
C)
On 1 July 2014 Waugh Ltd enters into an arrangement with a US bank-Big Bank-to borrow US$900 000.The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent.The exchange rate information is: \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\ \hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\ \hline \end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)
D)
On 1 July 2014 Waugh Ltd enters into an arrangement with a US bank-Big Bank-to borrow US$900 000.The term of the loan is 3 years with interest payable annually in arrears on 30 June at the rate of 10 per cent.The exchange rate information is: \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\ \hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\ \hline \end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)

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