Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 Total 15 marks Part A (9 marks) AMP Ltd is an investment company that trades in shares on the Australian Securities Exchange. AMP
Question 2 Total 15 marks Part A (9 marks) AMP Ltd is an investment company that trades in shares on the Australian Securities Exchange. AMP Lid values its equity instruments (shares) at fair value through the profit and loss account using trade date accounting. Settlement date is three days. meaning that settlement of trades occurs three business days after trade date. During the year ended 30 June 2020, AMP Lid made the following share trades in Qantas Airways Ltd (QAN), a well- known public listed company that is also the flag-carrier airline of Australia: Buy Trade dateOuastity Price hareAct Brokerage feet 10-1.200.000 SH 5500 30120 13.000 $12 Buy 5500 2820 35.000 Sis Sell 5300 The closing market price of QAN shares on 30 June 2020 was $14.20 Requirement: Prepare the online for AMP I to over the shove trade QANY shares for the year coded 30 June 2000. Swall and Question 2 Part B. (6 marks) On 1 January 2018, Sydney Ltd purchased a debt instrument with a remaining 3-year term for cash consideration of S1,640,123 (including transaction costs). The instrument had a principal amount of $1,900.000 (the amount payable on redemption) and interest coupon of 4.5% distributed at the end of each calendar year. The effective interest rate was 10%. The debt instrument is classified as subsequent measurement at amortised cost. Requirement: Prepare the journal entries of Sydney Lad for the initial and stunt moment i mark of the dete intret Show all working
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started