ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa Malaysia. The company operates in central area of Penang. The company closes its account on every 31 December. The following information is related to the equity and debt investments of ExcelGo Bhd. i. On 1 March 2021, the company acquired: 50,000 shares of Petaling Bhd at RM2.00 per share. Transaction cost incurred was RM3,500. ExcelGo Bhd intends to trade shares of Petaling Bhd in early 2022 to take advantage of the changes in the share prices. (i) (ii) 100,000 shares of Kenanga Bhd at RM2.50 per share. Transaction cost incurred was RM5,000. ExcelGo Bhd intends to establish these shares as a non-trading investment. ii. On 1 July 2021, the company purchased RM3,000,000 of 12% bonds for RM3,275,000. The bonds provide the bondholders with a yield of 10% market rate. The interest is paid every 1 July and 1 January. The bonds have been classified as held for collection (HFC). On 15 November 2021, ExcelGo sold 50% shares of Petaling Bhd at the selling price of RM3.00 per share. iii. Additional information: The acquisition of the equity investments by ExcelGo Bhd represents less than 20 percent of interest in the companies. I. 2. ExcclGo received a cash dividend of RM0.50 per unit of its investment in shares of Kenanga Bhd on 20 December 2021. The market values of the equity investments on 31 December 2021 are as follows: 3. Market value per share Investment Petaling Bhd Kenanga Bhd RM3.15 RM3.50 REQUIRED: (Show details of workings) (a) Prepare all related journal entries of the equity investment in Petaling Bhd for the year ended 31 December 2021. (b) Prepare all related journal entries of the equity investment in Kenanga Bhd for the year ended 31 December 2021. (c) Prepare all related joumal entries of the debt investment for the year ended 31 December 2021. ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa Malaysia. The company operates in central area of Penang. The company closes its account on every 31 December. The following information is related to the equity and debt investments of ExcelGo Bhd. i. On 1 March 2021, the company acquired: 50,000 shares of Petaling Bhd at RM2.00 per share. Transaction cost incurred was RM3,500. ExcelGo Bhd intends to trade shares of Petaling Bhd in early 2022 to take advantage of the changes in the share prices. (i) (ii) 100,000 shares of Kenanga Bhd at RM2.50 per share. Transaction cost incurred was RM5,000. ExcelGo Bhd intends to establish these shares as a non-trading investment. ii. On 1 July 2021, the company purchased RM3,000,000 of 12% bonds for RM3,275,000. The bonds provide the bondholders with a yield of 10% market rate. The interest is paid every 1 July and 1 January. The bonds have been classified as held for collection (HFC). On 15 November 2021, ExcelGo sold 50% shares of Petaling Bhd at the selling price of RM3.00 per share. iii. Additional information: The acquisition of the equity investments by ExcelGo Bhd represents less than 20 percent of interest in the companies. I. 2. ExcclGo received a cash dividend of RM0.50 per unit of its investment in shares of Kenanga Bhd on 20 December 2021. The market values of the equity investments on 31 December 2021 are as follows: 3. Market value per share Investment Petaling Bhd Kenanga Bhd RM3.15 RM3.50 REQUIRED: (Show details of workings) (a) Prepare all related journal entries of the equity investment in Petaling Bhd for the year ended 31 December 2021. (b) Prepare all related journal entries of the equity investment in Kenanga Bhd for the year ended 31 December 2021. (c) Prepare all related joumal entries of the debt investment for the year ended 31 December 2021.
Expert Answer:
Related Book For
Business Statistics
ISBN: 9780133899122
3rd Canadian edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright
Posted Date:
Students also viewed these accounting questions
-
Tor plc is a large company listed on the main market of the London Stock Exchange. The objectives of the company, in the current year and in recent years, are stated by its Annual Report to be as...
-
Select ONE company listed on the South Pacific Stock Exchange (SPSE) and answer the following questions. You have been selected as an Investment Consultant by company that you have selected and the...
-
A mining company listed on the Toronto Stock Exchange is considering a merger with another company. The CEO thinks that the probability of the deal being acceptable to his shareholders is 0.9. He has...
-
Find the radius of convergence and interval of convergence of the series. 00 (-1)"x" n=0 n + 1
-
Suppose that the goal of the fiscal authority is to set government spending so as to achieve economic efficiency, while the goal of the monetary authority is to achieve stability of the price level...
-
Aron, a college student, signs a one-year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the landlords consent. In...
-
How are the cash flows resulting from a company's investing activities identified?
-
How do managers use the concept of cost-benefit during the communicating phase of the management process?
-
What kind of factors influences a person's ability to solve a problem? What are some examples of problems that people have a hard time solving, and why? What are some ways that you could improve your...
-
Oakridge Leasing Corporation signs an agreement on January 1, 2020, to lease equipment to LeBlanc Limited. Oakridge and LeBlanc follow ASPE. The following information relates to the agreement. 1. The...
-
1. Provide a list of four ways companies can motivate their suppliers to improve. 2. What are the two external certification programs discussed in the text? What does each certification attempt to...
-
What is phase-shift error? When does it become important?
-
What is an accelerometer?
-
What is the frequency range of a seismometer?
-
What is a seismic instrument?
-
How are Bode plots used?
-
Calculating Standard Quantities for Actual Production Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average,...
-
MgO prevents premature evaporation of Al in a furnace by maintaining the aluminum as Al2O3. Another type of matrix modifier prevents loss of signal from the atom X that readily forms the molecular...
-
The website manager in Exercise 82 wants to model the time between purchases. Recall that the mean number of purchases in the evening is three per minute. a) What model would you use to model the...
-
Statistics Canadas National Housing Survey shows that, in 2013, median individual income was $27,600, 10% of individuals made more than $80,400, and the top 1% got more than $191,100. Why does...
-
Suppose we surveyed 1006 Canadian adults and found that 41% believed that Canadian values were more right wing than 10 years previously. a) A newspaper reporting these results stated, Canadian...
-
Who trades with the United States?
-
What factors might explain the differential in average income between men and women?
-
Decisions as to the allocation of human organs for transplant are based on characteristics such as blood type, weight, and age;urgency of need; and length of time on the waiting list (quoted from the...
Study smarter with the SolutionInn App