Question: question 2 Question 2 (9 marks) ROA Limited purchased the following trading securities on 1 January 2019. Cost and fair values are shown below: Cost

question 2

Question 2 (9 marks) ROA Limited purchased the following trading securities on 1 January 2019. Cost and fair values are shown below: Cost Fair value Fair value 1 January 2019 31 December 2019 31 December 2020 BTS Limited (10,000 shares) $28 per share $23 per share $30 per share LK Limited (2,000 shares) $105 per share $107 per share $120 per share Required: a. Calculate total cost on 1 January 2019, total fair value on 31 December 2019 and total fair value on 31 December 2020. (3 marks) b. Prepare the journal entry to record the purchase of the equity investments on 1 January 2019. (2 marks) c. Prepare the journal entry to record the fair value adjustment on 31 December 2019 and 31 December 2020. (4 marks)

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