Question: Houz Ltd enters into an agreement with a Design Company (Singapore) to construct an item of machinery (1/3/2016). Cost is S$250K.

Question:Houz Ltd enters into an agreement with a Design Company (Singapore) to construct an item of machinery (1/3/2016). Cost is S$250K. Construction is completed 1/6/2016, shipped FOB Singapore on that date. As at 30/6/2016, debt still unpaid and is Houz Ltd's reporting date. Exchange rates are as follows:

1/3/2016 A$1.00 = S$1.10

1/6/2016 A$1.00 = S$1.02

30/6/2016 A$1.00 = S$1.00

Required:

Prepare the journal entries for the above.