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Referencing Styles : Not Selected Question 1 (8 marks)On 1 May 2016 Seaview Ltd purchased furniture for US$50 000 on credit from an American supplier. On the same day, Seaview recognised an Accounts Payable for the furniture bought. The furniture was shipped from California on the same date. Seaview Ltd paid the American supplier on 15th August 2016.Exchange rates are given below: 1 May 201630 June 201615 August 2016 A$1.00 = US$0.70A$1.00 = US$0.80A$1.00 = US$0.85 Required: Prepare journal entries to record the above transactio … View More Question 1 (8 marks) On 1 May 2016 Seaview Ltd purchased furniture for US$50 000 on credit from an American supplier. On the same day, Seaview recognised an Accounts Payable for the furniture bought. The furniture was shipped from California on the same date. Seaview Ltd paid the American supplier on 15th August 2016. Exchange rates are given below: 1 May 2016 30 June 2016 15 August 2016 A$1.00 = US$0.70 A$1.00 = US$0.80 A$1.00 = US$0.85 Required: Prepare journal entries to record the above transaction for Seaview Ltd. (8 marks) Question 2 (12 marks) Woodview Ltd is an Australian company whose functional currency is Australian dollars. On 25th May 2016 Woodview Ltd sold a designer suit to a company in France for 20 000 Euros. Woodview delivered the suit to the French customer on 25th June 2016 when it recognised an Accounts Receivable. The financial year end is 30th June and the customer paid for the suit on 15th July 2016. Exchange rates: 25th May 2016 A$1.00 = 0.70 Euros 25th June 2016 A$1.00 = 0.58 Euros 30th June 2016 A$1.00 = 0.62 Euros 15th July 2016 A$1.00 = 0.60 Euros Required: i) Prepare journal entries to record the above transactions for Woodview Ltd from 25th May to 15th July 2016 inclusive. Show all workings. (10 marks) ii) Calculate the overall foreign currency gain or loss from this sale. Show all workings. (2 marks Read Less

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