2. question

Sweetwater Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $118,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $525,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $125,000 and $630,000, respectively. During the year, dividends of $56,000 were received from associates while $11,000 was received from trading investments. In addition, the company purchased investments in associates and trading investments for cash of $117,000 and $48,000, respectively. Also, during 2021, the company received $50,000 when it sold trading investments that it carried at $32,000. (a) List the accounts that Sweetwater will show on its 2021 statement of income pertaining to its investments. Indicate where these accounts will appear on the statement of income. (Enter loss using either a negative sign preceding the number e.g.-2,945 or parentheses eg. (2,945).) SweetwaterLtd. Statement of Income Other Income and Expenses Realized Gain on Trading Investments 18000 Unrealized Loss on Trading Investments 1000 Dividend Income 11,000 Income from Associates $ On July 2, 2021, Astrotech Inc. purchased $440,000 of Sain Corp.4% bonds at a price of 405,704 to yield a market interest rate of 5%. The bonds pay interest semi-annually on July 1 and January 1, and mature on July 1, 2031. Astrotech plans to hold this investment until it matures. At December 31, 2021, which is the year end for both companies, the bonds were trading at 94 (this means 94% of face value) (a) For Astrotech, the investor, record. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,250. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) 1. the purchase of the bonds on July 2, 2021, 2. the accrual of interest on December 31, 2021, 3. the receipt of interest on January 1, 2022, and 4. the receipt of interest on July 1, 2022. Date Account Titles and Explanation Debit Credit 2021 July 2 Dec. 31 2022 Jan. 1 July 1