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QUESTION 4 Entity A is listed in Hong Kong. It is a toy manufacturer which commenced its business more than thirty years ago. July 2
QUESTION
Entity A is listed in Hong Kong. It is a toy manufacturer which commenced its business more than thirty years ago.
July Fixed interest is received in arrears. The bond will be redeemed at par or premium or discount over its face value on June
Entity A intended to hold the bond until maturity. The fair value option was not elected at the initial recognition.
The fair values of the bond were as follows:
June $
June $
November $
December $
June $
The effective interest rate is The market environment is stable and credit riskfree. The end of the reporting period is June.
REQUIRED:
According to relevant acoounting standards, prepare journal entries to recognise the transactions of Entity A from July to June
ACCOUNTS FOR INPUT:
Financial asset Amortised Cost Financial asset FVTPL Financial asset FVTOCI
Financial liablity Equity instrument Transaction cost Bank Loss allowance Impaiment loss Reversal of impairment loss
Gain on remeasurement PL Loss on remeasurement PL Gain on remeasurement OCl Loss on remeasurement OCI
Payable Recelvable Other income Other expense Reclassification PL Reclassification OCI
Interest expense Interest revenue Loss on disposal Gain on disposal Retained earnings No entry
ANSWERS:
Journal Entries:
Date
Jul
Jul
Jun
Jun
Jun
Jun
Account Name
Debit $
Hints For Sequence
NonAsset. Judge DriCr.
Judge DrCr
NonIncome. Judge DriCr.
NonIncome. Judge DriCr.
NonIncome. Judge DrC
Judge DrCr
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