UNIT $3\_$ASSIGNMENT QUESTIONJupiter Holdings Ltd is a listed company on the JSE. Jupiter Holdings Ltd has a $30$ April reportingperiod and the company is a registered VAT vendor. All of its suppliers and customers are registeredfor VAT purposes at a rate of $15\%.$Mr$.$ Edwin Terrestrial, an accountant at Jupiter Holdings Ltd$,$ was tasked with recognising thenecessary journal entries pertaining to investments in subsidiaries and other financial assets ofJupiter Holdings Ltd for the two years ending $30$ April $2024.$Having completed the work, he sent a memorandum on $29$ April $2024$ to Ms$.$ Princess Leia, thesenior accountant at Jupiter Holdings Ltd$,$ indicating what he had done.Jupiter Holdings LimitedMEMORANDUMTO: PrincessFROM: EdwinRE: Recognition of applicable journal entries pertaining to investmentsin subsidiaries and other financial assetsDATE: $29$ April $2024$Good morning colleague, please find below my notes and copies of journal entries posted pertaining toinvestments in subsidiaries and other financial assets for the two years ending $30$ April $2024.$ For every journalentry I posted, I also noted the transaction that lead to the entry:$1.$ Venus $($Pty$)$ Ltd Jupiter Holdings Ltd acquired $82500$ of the $110000$ issued ordinary shares of Venus $($Pty$)$ Ltd on$1$ December $2022$ at a cost of R$3011250.$Legal fees of R$723580$ incurred by Jupiter Holdings Ltd on this acquisition was included in the entry.J$012022$DebitRCreditR$01$ Dec Investment in Venus $($Pty$)$ Ltd $($SFP$)3011250$Finance cost $($P$/$L$)629200$VAT Input $($SFP$)(723580$ x $15/115)94380$Bank $($SFP$)3734830$Recognise the acquisition of $75\%$ shares in Venus$($Pty$)$ Ltd On $14$ April $2023$ Jupiter Holdings Ltd invoiced Venus $($Pty$)$ Ltd for management services provided,R$94000.$ Venus $($Pty$)$ Ltd settled the invoice on $26$ April $2023.$J$02$a$2023$DebitRCreditR$14$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)94000$Management fee from Venus $($Pty$)$ Ltd $($P$/$L$)94000$Recognise management fee receivable fromsubsidiary Venus $($Pty$)$ LtdJ$02$b$2023$DebitRCreditR$26$ Apr Bank $($SFP$)94000$Current account: Venus $($Pty$)$ Ltd $($SFP$)94000$Recognise receipt of management fee from subsidiaryVenus $($Pty$)$ Ltd On $4$ April $2024$ Venus $($Pty$)$ Ltd declared an ordinary share dividend of $140$c per share to shareholders.On the same day Jupiter Holdings Ltd sent an invoice of R$160000$ to Venus $($Pty$)$ Ltd for managementservices provided.Venus $($Pty$)$ Ltd made a payment for both dividends and management fees to Jupiter Holdings Ltd on$25$ April $2024.$J$03$a$2024$DebitRCreditR$4$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)115500$Dividend income from Venus $($Pty$)$ Ltd $($P$/$L$)115500$Recognise dividends declared by subsidiary Venus$($Pty$)$ Ltd $(82500$ shares x R$1,40)$J$03$b$2024$DebitRCreditR$4$ Apr Current account: Venus $($Pty$)$ Ltd $($SFP$)160000$Management fee from Venus $($Pty$)$ Ltd $($P$/$L$)160000$Recognise management fee receivable fromsubsidiary Venus $($Pty$)$ Ltd On $30$ April $2024$ the recoverable amount of the investment in Venus $($Pty$)$ Ltd was determined to beR$3276405.$J$042021$DebitRCreditR$30$ Apr Impairment loss investment in Venus $($Pty$)$ Ltd $($P$/$L$)3276405$Accumulated impairment investment in Venus$($Pty$)$ Ltd $($SFP$)3276405$Recognise the most recent recoverable amount of theinvestment in Venus $($Pty$)$ Ltd$2.$ Mars Ltd Jupiter Holdings Ltd acquired a stake of $25\%$ in the $190000$ ordinary shares of Mars Ltd on $13$ August$2022$ at an amount of R$1245625$ that included brokerage fees of R$129375.$J$052022$DebitRCreditR$13$ Aug Investment in Mars Ltd $($listed shares$)($SFP$)1116250$Brokerage fees $($P$/$L$)112500$VAT Input $($SFP$)16875$Bank $($SFP$)1245625$Recognise the purchase of $47500$ ordinary shares inMars Ltd at R$23,50$ per share plus brokerage fees ofR$129375$ On $5$ January $2023$ Mars Ltd declared and paid a dividend of $25$ cents per share.J$062023$DebitRCreditR$5$ Jan Dividends receivable $($SFP$)(47500$ shares x R$0,25)11875$Dividend income $($listed shares$)($P$/$L$)11875$Recognise a dividend of $25$ cents per share declaredby Mars Ltd on $5$ January $2023$J$072023$DebitRCreditR$5$ Jan Bank $($SFP$)11875$Dividends receivable $($SFP$)11875$Derecognise dividends receivable from Mars Ltd dueto receipt of the dividends on $5$ Jan $2023$ The following JSE listed share prices of Mars Ltd are applicable:Date Fair value per share$13/08/2022$ R$23\mathrm{.}5031/12/2022$ R$24\mathrm{.}8514/02/2023$ R$23\mathrm{.}6030/04/2023$ R$25\mathrm{.}2530/08/2023$ R$24\mathrm{.}3031/12/2023$ R$28\mathrm{.}5028/02/2024$ R$22\mathrm{.}7530/04/2024$ R$22\mathrm{.}50$J$082023$DebitRCreditR$30$ Apr Loss on fair value adjustment of shares $($P$/$L$)83125$Investment in Mars Ltd $($listed shares$)($SFP$)83125$Recognise the loss with the subsequent measurementof $47500$ Mars Ltd shares at R$25,25$ per share$(($R$23,50$ R$25,25)$ x $47500$ shares$)$ On $28$ February $2024$ Jupiter Holdings Ltd sold all of its shares in Mars Ltd to Pluto Ltd and receivedpayment the same day.J$092024$DebitRCreditR$30$ Apr Loss on fair value adjustment of shares $($P$/$L$)118750$Investment in Mars Ltd $($listed shares$)($SFP$)118750$Recognise the loss with the subsequent measurementof $47500$ Mars Ltd shares at R$22,75$ per share$(($R$25,25$ R$22,75)$ x $47500$ shares$)3.$ Saturn $($Pty$)$ Ltd Jupiter Holdings Ltd acquired $50000(10\%)$ ordinary shares in Saturn $($Pty$)$ Ltd on $23$ January $2024$ at aprice of R$14,40$ per share. Brokerage fees of R$13110$ and securities transfer tax of R$14191$ were alsoincurred.J$102024$DebitRCreditR$23$ Jan Investment in Saturn $($Pty$)$ Ltd $($SFP$)745591$VAT Input $($SFP$)1710$Bank $($SFP$)747301$Recognise the acquisition of shares in Saturn $($Pty$)$ Ltd On $1$ March $2024$ Saturn $($Pty$)$ Ltd declared a dividend of $35$c per share.J$112024$DebitRCreditR$1$ Mar Dividends receivable $($SFP$)17500$Dividend income $($unlisted shares$)($P$/$L$)17500$Recognise a dividend of $35$ cents per share declaredby Saturn $($Pty$)$ Ltd on $1$ March $2024(50000$ shares xR$0,35)---$o$0$o$---$REQUIRED:a$)$ Refer to each of the journal entries provided in the memorandum from the accountant.Where the accountant recognised a transaction with an incorrect journal entry, youare required to provide the correct journal entry $($and not the correcting journal entry$)$for that transaction. Where the accountant omitted a journal entry, you are required toprovide the missing journal entry for that transaction.Correct dates need to be provided but no journal narrations are required $(15)$b$)$ Disclose the following in the financial statements of Jupiter Holdings Ltd at $30$ April$2024.$ Comparative figures are not required. Income from subsidiary Income from other financial investments Investment in subsidiary Other financial investments $(14)$