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On 1 July 2014 Waugh Ltd Enters into an Arrangement

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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$0.55 \begin{array} { | l | l | } \hline 1 \text { July } 2014 & \text { A\$1 } = \text { US\$0.45 } \\\hline 30 \text { June } 2015 & \text { A\$1 } = \text { US\$0.55 } \\\hline\end{array} What journal entries are required in Waugh Ltd's books for 1 July 2014 and 30 June 2015 in accordance with AASB 121 (rounded to the nearest whole A$) ?

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Definitions:

Achiral

Describes molecules that are identical to their mirror image and do not exhibit chirality.

Chiral

Pertaining to a molecule that cannot be superimposed on its mirror image, often leading to optical activity.

Achiral

Describing a molecule that is superimposable on its mirror image, thus not exhibiting chirality.

Chiral

Describes a molecule that cannot be superimposed on its mirror image, often leading to different reactions and interactions depending on the spatial arrangement of its atoms.

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