REQUIRED: (Round all numbers to the nearest RM) (a) Prepare related journal entries to record the above transactions.(b) Prepare an extract of the Statement of Profit or Loss and Other Comprehensive Income for the year ended 2017.(c) Explain the general accounting and reporting rule for equity investment of held-for-trading and non-trading. WPS OfficeP Topic 6 Financial Assets A202P A202-Financial .ets-Student.pdf Q X+Sembag.O Go Premium= Menu vHomeInsertCommentEditPageProtectToolsIKQUESTION 1Hasanah Bhd is a medium-sized company, located in Bayan Lepas. The company closes itsaccount on 31 December every year. The following information relates to investments ofHasanah Bhd that occurred in 2017 and 2018.DateTransaction77/2017Acquired 70,000 unit shares of Yayasan Bhd at RM12.50 per unitwith transaction cost of RM9,000. The shares were purchased forlong term investment.3E22/10/2017 Acquired 30,000 unit of shares of Ronson Bhd at RM6.00. Thetransaction cost incurred was RM5,000. Due to the foreseeableincrement in the Ronson Bhd shares price, Hasanah Bhd intendsto sell the shares after 10 months from the date of acquisition.30/12/2017 Received a cash dividend of RM0.30 per share on its investmentin Yayasan Bhd.31/12/2017 The market value per share of Yayasan Bhd and Ronson Bhd wereRM13.00 and RM7.50 respectively.Acquired RM3,000,000 of 11% bonds for RM2,850,000. Thebonds will mature in 10 years and provide an effective interest rateof 12%. The interest is paid at the end of the year. The bonds havebeen classified as held for collection and selling (HFC).3/1/20186/4/2018Sold 55% of the investment in Ronson Bhd at RM130,000.31/12/2018 Received annual interest of bonds purchased on 3 January 2018.REQUIRED:(Round all numbers to the nearest RM)(a) Prepare related journal entries to record the above transactions.(b) Prepare an extract of the Statement of Profit or Loss and Other Comprehensive Income forthe year ended 2017.(c) Explain the general accounting and reporting rule for equity investment of held-for-tradingand non-trading.> >I80 0085% ->

Answered: a) Prepare related journal entries to…

Business

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a) Prepare related journal entries to record the above transactions.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...

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