Question $2(20$ marks$)$

Rogers AG company had the following transactions and investments in securities during $2022.$

a$.$ Jan. $1,2022$ Purchased $6\%$$$50,000$ bonds $($face value$)$ of Driver Ltd$.$ for $$51,500$ with effective interest rate at $4\mathrm{.}4\%.$ The bonds were issued on Jan. $1,2018,$ interest payable annually on Dec $31,$ and mature on Dec $31,2023.$ The contractual cash flows of the bonds are solely payments of principal and interest, and the bonds are managed within a "business model" to collect contractual cash flows and to sell before maturity from time to time.

b$.$ Feb. $1,2022$ Purchased Jordy SA ordinary shares, $$100$ par value, $200$ shares $(1\%$ of total Jordy SA shares$)$ at $$37,400.$ Rogers AG has no control or significant influence over Jordy SA and Rogers AG expects to sell these shares within the year.

c$.$ April $1,2022$

Purchased $$100,0005\%$ Government bonds at $$100,000$ issued on April $1,2022,$ interest payable on April $1$ and October $1,$ and due on April $1,2032.$ The contractual cash flows of the bonds are solely payments of principal and interest. The bonds are managed within a "business model" to collect contractual cash flows and intended to hold until maturity.

Required:

Classify each of the above $a,b,$ and $c$ investments into short$-$term or long$-$term, and also states it is under which type of the six investment types $($i$.$e$.$ Debt investments$-$AC$,$ Debt investments$-$FVOCI, Debt investments$-$FVTPL$,$ Equity investments$-$FVTPL$,$ Equity investments$-$FVOCI, and Equity investments$-$equity method$).$

$(3$ marks$)$

Prepare the journal entry to record the purchases of Jordy SA ordinary shares assuming that the purchase was paid by cash.

$(2$ marks$)$