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Platino Bhd is a Malaysian-based company that focuses on engineering services, property development, food, and beverage sectors. The company's objective is to generate superior investment

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Platino Bhd is a Malaysian-based company that focuses on engineering services, property development, food, and beverage sectors. The company's objective is to generate superior investment returns by focusing on core businesses and building on its strengths to further develop and diversify. Recently, the financial team is given the tasks on the financial planning and analysis of the potential investments of the company. The team is instructed to analyse the available options that can help in the expansion of the business. Below are snapshots of activities that have been taken by the teams. PART A: Financial Assets The senior accountant of Platino Bhd recommends to the board of directors to build an investment portfolio to meet the long-term financial goals through financial assets investments. The budget allocated for the financial asset's investment is approximately RM3,300,000. The senior accountant elaborated to the board of directors that savings account can offer easy access and security of guaranteed capital, however, returns can be modest, and thus, invest in the shares or bonds can provide stronger returns over the long-term albeit at a higher level of risk. Based on the senior accountant's advice on 1 January 2018, Platino Bhd purchased bonds at a 12% stated rate with a maturity value of RM800,000 for RM860,652. The bonds provide the bondholders with a 10% yield. The bonds are dated 1 January 2018 and mature 1 January 2023 with interest receivable 31 December each year. The company classified this debt investment as held for collection and selling (HFCS). The excess balance from the financial assets' investment budget Platino Bhd invested in non- trading equity investment. On 10 February 2018, Platino Bhd purchased 100,000 ordinary shares of Sri Pagi Bhd for RM23.50 per share (including transaction cost). On 30 December 2020, Platino Bhd receives a cash dividend of RM55,000 on its investment. One of the directors was concerned about the firm's financial investment following the firm's current condition that affected by the COVID-19. The director seeks an explanation from the senior accountant on which investment should the firm emphasizes to save their company from severely affected by the pandemic. CASE INSTRUCTIONS: (1) Define equity investments and debt investments. (2) Prepare the journal entries at the date of the purchase of the bonds. (3) Prepare a bond amortization schedule through 2022. Round up your answers

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