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On 1 February 2014,Morinda Ltd Completes a Binding Agreement to Purchase

Question 56

Multiple Choice

On 1 February 2014,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 2014,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 2014.The following is information about the exchange rates: $\begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\\hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\\hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\\hline\end{array}$ What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ?

A)
$On 1 February 2014,Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany.The cost of the equipment is €150 000.The construction of the lift is completed on 30 May 2014,and it is considered to be a qualifying asset according to AASB 123.The amount owing has not been paid by reporting date 30 June 2014.The following is information about the exchange rates: \begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\ \hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\ \hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\ \hline \end{array} What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)$
B)
$On 1 February 2014,Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany.The cost of the equipment is €150 000.The construction of the lift is completed on 30 May 2014,and it is considered to be a qualifying asset according to AASB 123.The amount owing has not been paid by reporting date 30 June 2014.The following is information about the exchange rates: \begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\ \hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\ \hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\ \hline \end{array} What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)$
C)
$On 1 February 2014,Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany.The cost of the equipment is €150 000.The construction of the lift is completed on 30 May 2014,and it is considered to be a qualifying asset according to AASB 123.The amount owing has not been paid by reporting date 30 June 2014.The following is information about the exchange rates: \begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\ \hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\ \hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\ \hline \end{array} What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)$
D)
$On 1 February 2014,Morinda Ltd completes a binding agreement to purchase a hydraulic lift from a manufacturer located in Germany.The cost of the equipment is €150 000.The construction of the lift is completed on 30 May 2014,and it is considered to be a qualifying asset according to AASB 123.The amount owing has not been paid by reporting date 30 June 2014.The following is information about the exchange rates: \begin{array} { | l | l | } \hline 1 \text { February } 2014 & \text { A\$1 } = € 0.60 \\ \hline 30 \text { May } 2014 & \text { A\$1 } = € 0.56 \\ \hline 30 \text { June } 2014 & \text { A\$1 } = € 0.46 \\ \hline \end{array} What entries are required to record the transaction and subsequent events in accordance with AASB 121 (rounded to the nearest whole A$) ? A) B) C) D)$

On 1 February 2014,Morinda Ltd Completes a Binding Agreement to Purchase

Multiple Choice

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