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NIM : MAT81766
MATKUL : FINANCIAL ACCOUNTING
KELAS : A £
Exercises E13.4
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)
b. Frank Ltd.
January 1 Share Investments € 81.000
Cash € 81.000
(30.000 shares x 30% x € 9)
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.
2020
January 1 Debt Investments $ 2.000.000
Cash $ 2.000.000
2023
January 1 Cash $ 140.000
Interest Receivable $ 140.000
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.
Current Assets
Interest Receivable $ 140.000
Investments
Debt Investments, at Fair Value $ 2.000.000