QUESTION FOUR At its year end, 31 March 2019, entity JBK held 60,000 GHS1 shares in a listed entity, X. The shares were purchased on 11 February 2019 at a price of 85p per share. The market value of the shares on 31 March 2019 was 93p and the transaction costs associated with the acquisition were GHS2,000. The investment is categorised as financial asset at fair value through other comprehensive income. Requirement Show the journal entries required in respect of both the initial acquisition and its subsequent re- measurement on 31 March 2019 and show the relevant extract from the statement of comprehensive income and the statement of financial position in respect of this investment. b. JBK disposed of these shares on 16 May 2021 for 96¢ per share. Requirement Show the journal entries required to record the de-recognition of this investment and briefly
QUESTION FOUR At its year end, 31 March 2019, entity JBK held 60,000 GHS1 shares in a listed entity, X. The shares were purchased on 11 February 2019 at a price of 85p per share. The market value of the shares on 31 March 2019 was 93p and the transaction costs associated with the acquisition were GHS2,000. The investment is categorised as financial asset at fair value through other comprehensive income. Requirement Show the journal entries required in respect of both the initial acquisition and its subsequent re- measurement on 31 March 2019 and show the relevant extract from the statement of comprehensive income and the statement of financial position in respect of this investment. b. JBK disposed of these shares on 16 May 2021 for 96¢ per share. Requirement Show the journal entries required to record the de-recognition of this investment and briefly
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION FOUR At its year end, 31 March
2019, entity JBK held 60,000 GHS1 shares
in a listed entity, X. The shares were
purchased on 11 February 2019 at a price of
85p per share. The market value of the
shares on 31 March 2019 was 93p and the
transaction costs associated with the
acquisition were GHS2,000. The investment
is categorised as financial asset at fair value
through other comprehensive income.
Requirement Show the journal entries
required in respect of both the initial
acquisition and its subsequent re-
measurement on 31 March 2019 and show
the relevant extract from the statement of
comprehensive income and the statement
of financial position in respect of this
investment. b. JBK disposed of these shares
on 16 May 2021 for 96¢ per share.
Requirement Show the journal entries
required to record the de-recognition of this
investment and briefly
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