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B) On January 5, 2019, FNB purchased the following share securities as a long-term investment 600 of ordinary shares of Bata for K4,200. FNB intends
B) On January 5, 2019, FNB purchased the following share securities as a long-term investment 600 of ordinary shares of Bata for K4,200. FNB intends to sell these as soon as the price goes up. 400 ordinary shares of Shoprite for K10,000. FNB intends to hold these shares as investment. FNB neither controls nor exercise significant influence over the activities of Bata and Shoprite i)Prepare the appropriate journal entries that FNB should make to record this investment on January 5, 2019(2 marks) On June 30, 2019, FNB Company received the following cash dividends: From Bata K2.00 per share From Shoprite. K1.00 per share ii) Prepare the appropriate journal entries that FNB should make to record these dividends on June 30, 2019(3 marks) On December 31, 2019, the fair value of the securities held by FNB Company is as follows: Per Share Bata PLc ordinary shares 10 Shoprite Plc ordinary shares iii) Prepare the appropriate journal entries that FNB should make on December 31 2019 (5 marks) 20
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