On 1 January 2012, Entity ZAM purchased two quoted securities from the open market. The details...

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On 1 January 2012, Entity ZAM purchased two quoted securities from the open market. The details of the purchases are as follows: 1,000,000 Ordinary shares of Bee Bhd 1,000,000 Ordinary shares of Zee Bhd Price RM 2,000,000 800,000 Commission RM 10,000 5,000 The investment in Bee Bhd is accounted for as fair value through profit and loss while the investment in Zee Bhd is accounted for as irrevocable election. On 31 December 2012, the quoted market price of Bee Bhd's ordinary shares is RM2.08 and the market price of Zee Bhd's ordinary shares is 78 sen per unit. Required: Show the journal entries to record the purchases and the changes in the fair values of the investments. On 1 January 2012, Entity ZAM purchased two quoted securities from the open market. The details of the purchases are as follows: 1,000,000 Ordinary shares of Bee Bhd 1,000,000 Ordinary shares of Zee Bhd Price RM 2,000,000 800,000 Commission RM 10,000 5,000 The investment in Bee Bhd is accounted for as fair value through profit and loss while the investment in Zee Bhd is accounted for as irrevocable election. On 31 December 2012, the quoted market price of Bee Bhd's ordinary shares is RM2.08 and the market price of Zee Bhd's ordinary shares is 78 sen per unit. Required: Show the journal entries to record the purchases and the changes in the fair values of the investments.

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Journal entries for the purchases Purchase of 1000000 ordinary shares of Bee BhdDr In... View the full answer