waring Bng is a Malaysian-based company that focuses on engineering services, property development, food, and beverage sectors. The company's objective is to generate superior investment returns by focusing on core businesses and building on its strengths to further develop and diversify. Recently, the financial team is given the tasks on the financial planning and analysis of the potential investments of the company. The team is instructed to analyse the available options that can help in the expansion of the business. Below are snapshots of activities that have been taken by the teams. PART A: Financial Assets The senior accountant of Platino Bhd recommends to the board of directors to build an investment portfolio to meet the long-term financial goals through financial assets investments. The budget allocated for the financial asset's investment is approximately RM3,300,000. The senior accountant elaborated to the board of directors that savings account can offer easy access and security of guaranteed capital, however, returns can be modest, and thus, invest in the shares or bonds can provide stronger returns over the long-term albeit at a higher level of risk. Based on the senior accountant's advice on 1 January 2018, Platino Bhd purchased bonds at a 12% stated rate with a maturity value of RM800,000 for RM860,652. The bonds provide the bondholders with a 10% yield. The bonds are dated 1 January 2018 and mature 1 January 2023 with interest receivable 31 December each year. The company classified this debt investment as held for collection and selling (HFCS). The excess balance from the financial assets' investment budget Platino Bhd invested in non- trading equity investment. On 10 February 2018. Platino Bhd purchased 100,000 ordinary shares of Sri Pagi Bhd for RM23.50 per share (including transaction cost). On 30 December 2020. Plating Bhd receives a cash dividend of RM55,000 on its investment. One of the directors was concerned about the firm's financial investment following the firm's current condition that affected by the COVID-19. The director seeks an explanation from the senior accountant on which investment should the firm emphasizes to save their company from severely affected by the pandemic. CASE INSTRUCTIONS: | (1) Prepare the journal entries for the non-trading equity investment. (2) As the senior accountant of Platino Bhd. explain which investment is the best for the firm to invest to save the firm in the long run (CTPS 5). Platino Bhd leases the following assets from three lessors. The assets are to be used in the property development of the company. The details of the assets are as follows: Lessor Colton Bhd Marisha Bhd Tinker Bhd Type of asset Excavator Truck Crane Yearly rental RM15,000 (first payment on 31 December 2020) RM12,000 (first payment on 28 February 2021) RM10,000 (first payment on 30 June 2020) Inception date 1 January 2020 1 March 2020 1 July 2019 Lease term 10 years 7 years 5 years Estimated economic 20 years life 9 years 10 years Purchase option None None RM75,000 at end of year 10. Renewal option None None None RM220,000 RM150,000 RM55,000 Fair value at the inception of lease -O- RM15,000 RM10,000 Guaranteed residual value RM90.000 RM11,000 RM10,000 Estimated residual value at end of lease term Implicit rate 5% 4% 4% 4 % CASE INSTRUCTIONS: (11) Prepare journal entries for Platino Bhd at the inception date of each lease. waring Bng is a Malaysian-based company that focuses on engineering services, property development, food, and beverage sectors. The company's objective is to generate superior investment returns by focusing on core businesses and building on its strengths to further develop and diversify. Recently, the financial team is given the tasks on the financial planning and analysis of the potential investments of the company. The team is instructed to analyse the available options that can help in the expansion of the business. Below are snapshots of activities that have been taken by the teams. PART A: Financial Assets The senior accountant of Platino Bhd recommends to the board of directors to build an investment portfolio to meet the long-term financial goals through financial assets investments. The budget allocated for the financial asset's investment is approximately RM3,300,000. The senior accountant elaborated to the board of directors that savings account can offer easy access and security of guaranteed capital, however, returns can be modest, and thus, invest in the shares or bonds can provide stronger returns over the long-term albeit at a higher level of risk. Based on the senior accountant's advice on 1 January 2018, Platino Bhd purchased bonds at a 12% stated rate with a maturity value of RM800,000 for RM860,652. The bonds provide the bondholders with a 10% yield. The bonds are dated 1 January 2018 and mature 1 January 2023 with interest receivable 31 December each year. The company classified this debt investment as held for collection and selling (HFCS). The excess balance from the financial assets' investment budget Platino Bhd invested in non- trading equity investment. On 10 February 2018. Platino Bhd purchased 100,000 ordinary shares of Sri Pagi Bhd for RM23.50 per share (including transaction cost). On 30 December 2020. Plating Bhd receives a cash dividend of RM55,000 on its investment. One of the directors was concerned about the firm's financial investment following the firm's current condition that affected by the COVID-19. The director seeks an explanation from the senior accountant on which investment should the firm emphasizes to save their company from severely affected by the pandemic. CASE INSTRUCTIONS: | (1) Prepare the journal entries for the non-trading equity investment. (2) As the senior accountant of Platino Bhd. explain which investment is the best for the firm to invest to save the firm in the long run (CTPS 5). Platino Bhd leases the following assets from three lessors. The assets are to be used in the property development of the company. The details of the assets are as follows: Lessor Colton Bhd Marisha Bhd Tinker Bhd Type of asset Excavator Truck Crane Yearly rental RM15,000 (first payment on 31 December 2020) RM12,000 (first payment on 28 February 2021) RM10,000 (first payment on 30 June 2020) Inception date 1 January 2020 1 March 2020 1 July 2019 Lease term 10 years 7 years 5 years Estimated economic 20 years life 9 years 10 years Purchase option None None RM75,000 at end of year 10. Renewal option None None None RM220,000 RM150,000 RM55,000 Fair value at the inception of lease -O- RM15,000 RM10,000 Guaranteed residual value RM90.000 RM11,000 RM10,000 Estimated residual value at end of lease term Implicit rate 5% 4% 4% 4 % CASE INSTRUCTIONS: (11) Prepare journal entries for Platino Bhd at the inception date of each lease