ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa...

 

   

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ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa Malaysia. The company operates in central area of Penang. The company closes its account on every 31 December. The following information is related to the equity and debt investments of ExcelGo Bhd. i. On 1 March 2021, the company acquired: 50,000 shares of Petaling Bhd at RM2.00 per share. Transaction cost incurred was RM3,500. ExcelGo Bhd intends to trade shares of Petaling Bhd in early 2022 to take advantage of the changes in the share prices. (i) (ii) 100,000 shares of Kenanga Bhd at RM2.50 per share. Transaction cost incurred was RM5,000. ExcelGo Bhd intends to establish these shares as a non-trading investment. ii. On 1 July 2021, the company purchased RM3,000,000 of 12% bonds for RM3,275,000. The bonds provide the bondholders with a yield of 10% market rate. The interest is paid every 1 July and 1 January. The bonds have been classified as held for collection (HFC). On 15 November 2021, ExcelGo sold 50% shares of Petaling Bhd at the selling price of RM3.00 per share. iii. Additional information: The acquisition of the equity investments by ExcelGo Bhd represents less than 20 percent of interest in the companies. I. 2. ExcclGo received a cash dividend of RM0.50 per unit of its investment in shares of Kenanga Bhd on 20 December 2021. The market values of the equity investments on 31 December 2021 are as follows: 3. Market value per share Investment Petaling Bhd Kenanga Bhd RM3.15 RM3.50 REQUIRED: (Show details of workings) (a) Prepare all related journal entries of the equity investment in Petaling Bhd for the year ended 31 December 2021. (b) Prepare all related journal entries of the equity investment in Kenanga Bhd for the year ended 31 December 2021. (c) Prepare all related joumal entries of the debt investment for the year ended 31 December 2021. ExcelGo Bhd is a construction and property development company listed on the Main Board of Bursa Malaysia. The company operates in central area of Penang. The company closes its account on every 31 December. The following information is related to the equity and debt investments of ExcelGo Bhd. i. On 1 March 2021, the company acquired: 50,000 shares of Petaling Bhd at RM2.00 per share. Transaction cost incurred was RM3,500. ExcelGo Bhd intends to trade shares of Petaling Bhd in early 2022 to take advantage of the changes in the share prices. (i) (ii) 100,000 shares of Kenanga Bhd at RM2.50 per share. Transaction cost incurred was RM5,000. ExcelGo Bhd intends to establish these shares as a non-trading investment. ii. On 1 July 2021, the company purchased RM3,000,000 of 12% bonds for RM3,275,000. The bonds provide the bondholders with a yield of 10% market rate. The interest is paid every 1 July and 1 January. The bonds have been classified as held for collection (HFC). On 15 November 2021, ExcelGo sold 50% shares of Petaling Bhd at the selling price of RM3.00 per share. iii. Additional information: The acquisition of the equity investments by ExcelGo Bhd represents less than 20 percent of interest in the companies. I. 2. ExcclGo received a cash dividend of RM0.50 per unit of its investment in shares of Kenanga Bhd on 20 December 2021. The market values of the equity investments on 31 December 2021 are as follows: 3. Market value per share Investment Petaling Bhd Kenanga Bhd RM3.15 RM3.50 REQUIRED: (Show details of workings) (a) Prepare all related journal entries of the equity investment in Petaling Bhd for the year ended 31 December 2021. (b) Prepare all related journal entries of the equity investment in Kenanga Bhd for the year ended 31 December 2021. (c) Prepare all related joumal entries of the debt investment for the year ended 31 December 2021.

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