On 1 July 2019, Dianna Ltd offer the Chief Financial Officer (CFO) with a share- based incentive according to which she is offered a bonus that is calculated as 50,000 times the increase in the fair value of the entitys share price above $9. If the CFO does not leave the organisation the accrued entitlement will be paid after three years. However, if she leaves the organisation the accrued entitlement will be paid out upon departure, that is, the benefit will not be forfeited. When the bonus was offered the shares price was $7. Other information: The share price at 30 June 2020 is $9.5 The share price at 30 June 2021 is $11 The share price at 30 June 2022 is $12 The CFO stays for the three years and is paid the bonus on 1 July 2022 REQUIRED: Calculate the remuneration expense and the cumulative remuneration expense for the 3 years period. Prepare the journal entries for 30 June 2022 and 1 July 2022 that would appear in the accounting records of Dianna Ltd to account for the issue of the share appreciation rights.

On 1 July 2020 Boulos Ltd purchased governmental bonds for $502,114. The bonds have a face value of $480,000 and offered a coupon rate of 9 per cent paid annually. The market required a rate of return on 8 per cent on such bonds. The principal $480,000 paid back at the end of the 6th year.

Provide the journal entries to account for:

• The acquisition of the bonds on 1 July 2020

• The first interest receipt on 30 June 2021