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QUESTION 1 Lara Bhd is a plantation company listed on the main board of Bursa Malaysia since 2010. Lara Bhud inivolives in prduction of agricultuie
QUESTION 1 Lara Bhd is a plantation company listed on the main board of Bursa Malaysia since 2010. Lara Bhud inivolives in prduction of agricultuie products. The followving transactions related to investment in equity and debt during the year 2021 and 2022. Date 1 January 2021 Transaction Purchased RM6,000,000 of 12% bonds for RM7,000,000 with a yield of 10% market rate. The bonds were held for collection of cash flows purpose. The interest is payable each 1 July and 1 January. 30 June 2021 Purchased 400,000 ordinary shares of Imami Bhd at RM3.30 per share. The brokerage commission was 2% of the total cost. Lara Bhd intended to hold these shares for a long term investment. 1 September 2021 Purchased 250,000 ordinary shares of Tona Bhd at RM1.90 per share. The transaction cost incurred was RM5,400. Lara Bhd intended to sell these shares in a near future to take advantages of the increase in the share prices. 31 December 2021 A cash dividend received by Lara Bhd from its investment in ordinary shares of Imami Bhd and Tona Bhd were RM0.30 and RM0.20 per share respectively. 31 March 2022 Lara Bhd sold 25% of Tona Bhd shares at the selling price of RM3.00 per share. Additional information: 1. The market value per share of Imami Bhd and Tona Bhd at the end of the year 2021 were RM3.00 and RM2.00 respectively. 2. Financial year end for Lara Bhd is 31 December each year. 3. The acquisition of ordinary shares of Imami Bhd and Tona Bhd represents less than 20% of interest in the companies. REQUIRED: (Show details of workings) a. Prepare all related journal entries of the debt investment for the year ended 31 December 2021. b. Prepare all related journal entries of equity investment in Imami Bhd for the year ended 31 December 2021. c. Prepare all related journal entries of equity investment in Tona Bhd for the year ended 31 December 2021 and the selling of investment in 2022
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