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A. On 1 January 2020, Felisha Bhd bought common shares in Felix Bhd. for RM250,000. At the end of the year, the shares had
A. On 1 January 2020, Felisha Bhd bought common shares in Felix Bhd. for RM250,000. At the end of the year, the shares had a value of RM280,000. At the end of the following year, 2021 the entire shares are sold for RM230,000. Felisha Bhd. closes its accounts on 31 December every year. Required: Prepare the journal entry for the financial year 2020 and 2021 assuming that the shares are classified as: 1. Financial Asset at Fair value through profit and loss (FVTPL) 2. Financial Asset at Fair value through Other Comprehensive Income (FVTOCI) (4 marks) (4 marks) B. Khazanah Treasury Bhd. intends to issue a RM12,000,000 par value bond with a coupon rate of 6% and matures in four years. The prevailing market interest rate of similar risk class bonds is 8%. Required: 1. Determine the value of the bond at the date of issuance. 2. Based on your answer in (a) above, determine the amount of discount/premium. 3. Prepare the journal entry at the date of issuance. (2 marks) (1.5 marks) (1.5 marks) 4. Assume that at maturity date, the discount/premium has been fully amortised, prepare the journal entry on redemption (1 mark) Activate Windows 5. Differentiate between financial equity and financial liability. Give ONE (1) example for each of those financial instruments. Go to Settings to act (6 marksjo
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