View the step-by-step solution to:

Question

hi can u help me out with this

WhatsApp Image 2019-09-20 at</h1><p class='abPRemoveTitle'> 13.03.09.jpegWhatsApp Image 2019-09-20 at 13.03.09 (1).jpeg

WhatsApp Image 2019-09-20 at 13.03.09 (1).jpeg

ACC3210
JUN 2019
QUIZ
Question 3 (3 marks)
Norman bought 100,000 shares in a listed entity on 1 November 2015. Each share cost $5 to
purchase and a fee of $0.25 per share was paid as commission to a broker. The fair value of
each share at 31 December 2015 was $3.50. the shares are bought for trading purposes.
Required:
Explain how the above financial assets will be accounted for in the financial statements
7205 000
Question 4 (4 marks)
2,100,000
Norma issues 20,000 redeemable debentures at their $100 par value, incurring issue costs of
$100,000. The debentures are redeemable at a 5% premium in 4 years' time and carry a
coupon rate of 2%. The effective rate on the debenture is 4.58%.
Required:
Calculate the amounts to be shown in the statement of financial position and statement of
profit or loss for each of the four years of the debenture.
-THE END-

WhatsApp Image 2019-09-20 at 13.03.09.jpeg

Question 1 (7 marks)
Apple acquired 1,000 shares of XZY Bhd with a quoted price of RM5,500. in addition, ACE
incurred transaction cost of RM500. At the same time, Apple issued bonds for a total
consideration of RM4 million and incurred transaction costs of RM45,000 in issuing the bonds.
Additional information:
a. Apple classifies the shares of XYZ Bhd as measured at &quot;fair value through profit or loss&quot;.
b. Apple classifies the shares of XYZ Bhd as measured at &quot;fair value through OCI&quot;. to
c. Apple measures the bonds at &quot;amortised cost&quot;.
Required:
Prepare the journal entries on initial recognition.
Question 2 (13 marks)
Happy Ltd issues 4,000 convertible bonds at the beginning of year x2. The bonds have a three
year term and are issued with a face value of RM1,000 per bond. Each bond is convertible at any
time up to maturity into 250 ordinary shares. interest is payable annually in arrears at a normal
annual interest rate of 5%. The prevailing market interest rate for similar instruments without
conversion options is 7%.
Required:
a. Determine both the value of the equity and liability component of the bond.
(4 marks)
b. Statement of profit or loss extract for the year ended 31 December x2 to x4.
c. Statement of financial position extract as at 31 December x2 to x4.
(3 marks)
(6 marks)

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes