Assume that all companies in this scenario are public companies listed on the Australian Stock Exchange. Assume that each company has 1,000,000 ordinary shares on issue.

On 1 July 2020, Winsor Ltd purchased 2,500 ordinary shares of Xena Ltd and 1,000 ordinary shares of Yarra Ltd. On the same day, Yarra Ltd purchased 5,000 ordinary shares of Zelo Ltd.

The market share prices of Xena Ltd, Yarra Ltd, and Zelo Ltd at the following dates (purchase date and end of financial year) are listed below:

1 July 2020 Xena Ltd $10.12

Yarra Ltd $8.50 Zelo Ltd $3.65

30 June 2021 $10.34
$6.50
$3.75

In addition, the following costs were incurred by the investor in each of the share purchases. All stamp duties and brokerage fees were paid in cash on the day of the share purchase. Employee salaries are accrued on the day of purchase and paid at the end of each month.

Purchasing Shares of Xena Ltd

Brokerage fees $1,265 Stamp duties $759 Employee salaries* $506

Purchasing Shares of Yarra Ltd $425

$255 $170

Purchasing Shares of Zelo Ltd $913

$548 $365

* for time spent in evaluating and transacting the share purchases.

* for time spent in evaluating and transacting the share purchases.

Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question
What was the total value of "Investment in Xena Ltd” recorded by Winsor Ltd on 1 July 2020?

Instructions: Provide your answer in the answer box below. The number must be rounded to the nearest whole dollar. Do NOT enter any comma (,) dollar sign ($), space, or any other punctuation. For example, if you think the answer is $10,000.20, you must enter 10000 into the box. Incorrectly formatted answers will not be awarded marks.

* for time spent in evaluating and transacting the share purchases.

Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

What was the total value of "Investment in Zelo Ltd" recorded by Yarra Ltd on 1 July 2020?

Instructions: Provide your answer in the answer box below. The number must be rounded to the nearest whole dollar. Do NOT enter any comma (,) dollar sign ($), space, or any other punctuation. For example, if you think the answer is $10,000.20, you must enter 10000 into the box. Incorrectly formatted answers will not be awarded marks.

Brokerage fees Stamp duties Employee salaries*

1pts

shares or Xena Ltd $1,265 $759 $506

shares or Yarra Ltd

$425$255$170

shares or Zelo ltd

$913$548$365

* for time spent in evaluating and transacting the share purchases.
Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

Which of the following may form a part of the correct journal entries recorded by Winsor Ltd on 1 July 2020? Please select all that apply (there may be one or more correct answer/s).

A Dr Stamp Duty Expense 759 B Dr Shares in Xena Ltd 1,265 C Dr Shares in Xena Ltd 25,300 D Dr Salary Expense 506

* for time spent in evaluating and transacting the share purchases.

Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

Which of the following may not be a part of the correct journal entries recorded by Winsor Ltd in relation to its investment in Yarra Ltd on 1 July 2020?

A Cr Cash 9180
B Dr Shares in Yarra Ltd 255
C Dr Salary Expense 170
D Dr Brokerage Fee Expense 425

Stamp duties $759 $255 Employee salaries* $506 $170

1pts

* for time spent in evaluating and transacting the share purchases.
Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them fora long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

Which of the following is a correct journal entry recorded by Winsor Ltd on 30 June 2021 in relation to its investment in Xena Ltd?

A Cr Gain on Investment (OCI) 550
B Dr Loss on Investment (P&L) 1,474 C Cr Gain on Investment (P&L) 550 D Dr Loss on Investment (OCI) 1,474 E Cr Gain on Investment (P&L) 1,474 F Dr Loss on Investment (OCI) 550
G Dr Loss on Investment (P&L) 550 H CrGain on Investment (OCI) lf474

Stamp duties $759 $255
Employee salaries* $506 $170
* for time spent in evaluating and transacting the share purchases.
Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

Which of the following is a correct journal entry recorded by Winsor Ltd on 30 June 2021 in relation to its investment in Yarra Ltd?

A Cr Gain on Investment (OCI) 2,680

B Cr Gain C Dr Loss D Cr Gain E Dr Loss F Dr Loss G Cr Gain H Dr Loss

Question20

Stamp duties
Employee salaries* $506 $170

on Investment (P&L) 2*000 on Investment (P&L) 2,000 on Investment (P&L) 2,680 on Investment (OCI) 2,680

on Investment (P&L) 2,680 on Investment (OCI) 2,000 on Investment (OCI) 2t000

$759 $255

$548 $365

* for time spent in evaluating and transacting the share purchases.

Winsor Ltd had elected, as a general accounting policy, to record all changes in fair value of its investments through other comprehensive income (OCI). Winsor Ltd purchased the shares in Xena Ltd with the view of holding them for a long period of time to receive dividend income. In contrast, Winsor Ltd purchased the shares in Yarra Ltd with the expectation of reselling the shares within six months at a much higher share price. Yarra Ltd generally records the changes in the fair value of its share investments through profit and loss.

Question

Which of the following is a correct journal entry recorded by Yarra Ltd on 30 June 2021 in relation to its investment in Zelo Ltd?

A Dr Loss on Investment (OCI) 961

 B Dr Loss on Investment (OCI) 500 

C Dr Loss on Investment (P&.L) 961

 D Cr Gain on Investment (OCI) 500 

E Dr Loss on Investment (P&L) 500 

F Cr Gain on Investment (P&L) 500

 G Cr Gain on Investment (OCI) 961 

H Cr Gain on Investment (P&L) 961