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Take me to the text On May 1, 2020, Cheng Company, a public company, acquired 176,000 of the 550,000 outstanding common shares from Zahra Company for a total of $1,716,000. This investment is part of Cheng Company's long-term business diversification plan. Cheng Company's year-end is December 31, and it chooses to use the equity method of accounting for its strategic investments. During 2020, the following investment activities occurred. 1) Zahra Company recorded an annual net income of $1,026,000 for its 2019-2020 fiscal year-end of June 30, 2020. 2) Zahra Company paid a cash dividend of $295,000 on July 30, 2020. Required Prepare journal entries to record the acquisition of shares by Cheng Company, the revenue of investment from Zahra Company on June 30, 2020 and the receipt of cash dividends on July 30, 2020. For simplicity, calculate any share of profit strictly as a percentage of the current holdings, although those shares have not been held for a full year. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and explanation Debit " Credit May 1 Investment in Company Shares 1716000.00 Cash 1716000.00 To record acquisition of common shares Jun 30 Investment in Company Shares Revenue from Investment in Company Shares To record profit on equity investment Jun 30 Cash Investment in Company Shares To record dividends received on equity investment Take me to the text On July 1, 2020, Kabir Company, a private company, decided to buy $228,000, 5% 13-year bonds at par, issued by a private company in the US. The semi-annual payments are made on January 1 and July 1. The company intends to sell these bonds within the next six to nine months. Kabir Company records the bonds using the fair value through net income method, in compliance with ASPE, Kabir Company has a year-end of September 30. Required a) Record acquisition of the bonds. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and Explanation Debit Credit Jul 1 To record acquisition of bonds at par b) Assume that on September 30, 2020, the market value of the bonds decreased significantly to $205,200 due to a change of market interest rate. Prepare the journal entry to make the adjustment on this date. You do not need to record the interest accrued for this question. Date Account Title and Explanation Debit Credit Sep 30 To record fair value adjustment loss Take me to the text Raman Company paid $165,000 to purchase a portfolio of debt investments on March 1, 2020. Management's intention is to hold them for less than one year. Management does not intend to hold any debt investments until their maturity in this portfolio. Do not enter dollar signs or commas in the input boxes. For transactions with more than one debit or credit, enter the accounts in alphabetical order. Required a) Prepare the journal entry to record the purchase of these debt securities Date Account Title and Explanation Debit Credit Mar 1 To record purchase of investments b) on March 15, 2020, Raman Company received interest of $1,900 from the debt investments in this portfolio. Prepare the journal entry to record the receipt of interest. Date Account Title and Explanation Debit Credit Mar 15 To record receipt of interest C) The fair value of the portfolio at Raman Company's year end on March 31, 2020 was $174,000. Prepare the journal entry to record the fair value adjustment. Date Account Title and Explanation Debit Credit Mar 31 To record fair value adjustment d) On April 20, 2020, Raman Company sold half of the investments in this portfolio for $96,500. Prepare the journal entry to record the sale. Account Title and Explanation Debit Credit Date Apr 20 To record sale of half of investments