Would it be possible to provide us with the solution of Chapter 30 Foreign Exchange rate Example 1 from notes please ?
On 19 December, 2015 Numea Inc. bought goods from Mainwaring plc for 80,000 British Pounds, and on the same day bought goods from Cholmondley SA for 20,000 Zambian Kwacha. At the date of the transactions, the exchange rates were:
$1 = 0.69 Pounds (GBP)
$1 = 9.23 Kwacha (ZMW)
The Mainwaring plc transaction was entered into at a contracted rate of exchange of $1 = 0.7 GBP
Numea Inc paid both his creditors on 3 February, 2016 when the exchange rates were:
$1 = 0.72 GBP = 9 ZMW
On 31 December, 2015, Numea Inc’s financial year end, the equivalent rates were:
$1 = 0.68 GBP = 9.3 ZMW
Show how these transactions would be reflected in Numea Inc’s accounting records.