NAMA : FAHMI NUR ALFIYAN

NIM : MAT81766
MATKUL : FINANCIAL ACCOUNTING
KELAS : A £

Exercises E13.4

Dian Ltd. Had the following transactions pertaining to share investments.

February 1 Purchased 600 ordinary shares of Ronn (2%) for £ 6.200.
July 1 Received cash dividens of £ 1 per share on Ronn ordinary shares.
September 1 Sold 300 ordinary share of Ronn for £ 4.300.
December 1 Received cash dividends of £ 1 per share on Ronn ordinary shares.

a. Journalize the transactions.

February 1 Share Investments £ 6.200

Cash £ 6.200

July 1 Cash £ 600

Dividend Revenue £ 600
(600 shares x £ 1 = £ 600)

September 1 Cash £ 4.300

Share Investments £ 3.100
Gain on Sale of Share Investments £ 1.200
( £ 6.200 x 300 shares / 600 shares)

December 1 Cash £ 300

Dividen Revenue £ 300
(300 shares x £ 1)

b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

Dividend Revenue dan Gain (Loss) on Sales of Share Investments dilaporkan pada pendapatan dan
biaya lain-lain yang terdapat di laporan keuangan.
Exercises 13.8 €

Prepare all the necessary journal entries for 2020 for (a) Chicory Cosmetics and (b) Frank Ltd.

a. Chicory Cosmetics
March 18 Share Investments € 390.000
Cash € 390.000
(200.000 shares x 15% x € 13)

June 30 Cash € 9.000

Dividend Revenue € 9.000
(€ 60.000 x 15%)

December 31 Fair Value Adjustment - Non-Trading € 60.000

Unrealized Gain or Loss - Equity € 60.000

December 31 Unrealized Gain or Loss - Equity € 60.000

Accumulated Other Comprehensive Income € 60.000

b. Frank Ltd.
January 1 Share Investments € 81.000
Cash € 81.000
(30.000 shares x 30% x € 9)

June 15 Cash € 9.000

Share Investments € 9.000
(€ 30.000 x 30%)

December 31 Share Investments € 24.000

Revenue from Share Investments € 24.000
(€ 80.000 x 30%)
 Problems 13.1

2020
January 1 Purchased at face value HK$ 2.000.000 of Franco Nursing Centers, 10-year,
7% bonds dated January 1, 2020, directly from Franco, Interest is paid on January
1 of each year.
December 31 Accrual of interest at year-end on the Franco bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and that
the number of bonds owned has not changed from December 31, 2020, to December 31, 2020.)

2023
January 1 Received the annual interest on the Franco bonds.
January 1 Sold HK$ 1.000.000 Franco bonds at 105.
December 31 Accrual of interest at year-end on the Franco bonds.

a. Journalize the listed transactions of the years 2020 and 2023.

2020
January 1 Debt Investments $ 2.000.000
Cash $ 2.000.000

December 31 Interest Receivable $ 140.000

Interest Revenue $ 140.000
($ 2.000.000 x 7%)

2023
January 1 Cash $ 140.000
Interest Receivable $ 140.000

January 1 Cash $ 1.050.000

Debt Investments $ 1.000.000
Gain on Sale of Debt Investments $ 50.000

December 31 Interest Receivable $ 70.000

Interest Revenue $ 70.000

b. Show the statement of financial position presentation of the bonds and interest receivable at
December 31, 2020. Assume the investments are considered long-term.

Statement of Financial Position

Current Assets
Interest Receivable $ 140.000

Investments
Debt Investments, at Fair Value $ 2.000.000