Greenburg Company reported the following investment activity occurring at January 1 of the current year.

Required
a. Prepare the journal entry required to record the acquisition of the investments at the beginning of the current year.
b. Prepare the journal entries to record interest and dividend income at year- end, assuming that Greenburg receives the dividends on the preferred shares.
c. Prepare the journal entries required to adjust the carrying amount of the investments to their fair values at the end of the first year: Bonds, $ 4,595,425; Common Stock, $ 38 per share; and Preferred Stock, $ 12 per share.

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Amount Paid Description Portfolio Investment in bonds (S5,600,000 par value, 7% coupon, annual interest paid on Dacember 31, 15 years to maturity, 9% effective yield Investment in common stock (100,000 shares, $33 per share acquisition price 3,300,000 Investment in preferred stock 125,000 shares, $10 par, $10,000 annual dividend, $18 per share acquisition price) 450,000 $4,697,203 Held-to-maturity Trading Available-forsale