question archive 1)The Financial Manager of INVEST Ltd would like your help on the following transactions INVEST Ltd acquired 200 8% VISION bonds (par-value of R10 000) for N$2 000 000 on 1 January 2019
1)The Financial Manager of INVEST Ltd would like your help on the following transactions INVEST Ltd acquired 200 8% VISION bonds (par-value of R10 000) for N$2 000 000 on 1 January 2019
Subject:AccountingPrice: Bought3
1)The Financial Manager of INVEST Ltd would like your help on the following transactions INVEST Ltd acquired 200 8% VISION bonds (par-value of R10 000) for N$2 000 000 on 1 January 2019. INVEST Ltd sold 80 of these 8% VISION bonds to MISSION Ltd on 1 April 2020 for 101%. Interest on the bonds are payable in arrears annually on 31 December. The bonds traded at 101.8% at 30 June 2020 (30 June 2019: 101.1%). INVEST Ltd remeasures its investment in bonds to fair value before each disposal. Assume that any decreases in fair value are temporary INVEST Ltd designated these bonds as "at fair value through profit and loss (P/L)" on initial recognition. No transaction cost was incurred on any of the above transactions. Required: Journalise the above transactions in the accounting records of INVEST Ltd for the reporting periods ended 30 June 2019, 2020 and 2021. (21 marks) Journal narrations are not required. Do each instrument's journals separately.
