2. The Treasurer for Majestle advlses you that he plans to purchase a bond lasued by Dolly Company in 2020. He Indicates that the bond will mature in 2028 and the company will hold it to lis maturity unless the company decides to upgrede its Cincinneti plant in 2021 in which case the bond will be sold because the company will need to use the sales proceseds for the plant expansion. Eased on the above, advie the Chlef Accountant whether thls investment sheuld be claselfied as trading wellablo for sale, er holding. 1. Boris Company enters into a contract with Bella Company to manufacture, dellver, and installa specially made plece of machinery. The total contract price is $10,000,000. The contract provides that $5,000,000 must be paid to Boris when the machine is dellvered and $5,000,000 must be pald when installation is complete. The junlor accountant properly concluded that delivery of the manufactured machine and installation of the machine represent two separate performance oblizations. The accountant properly allocated $1,000,000 of the contract price to the installation obligation and $9,000,000 to the dellvery oblligation. Borls dellvers the machine to Eella's factory on December 29, 2019 and Boris employees complete the installation of the machine on January 10, 2020. Required: Please prepare the approprlate accountling entries for Borls on December 29, 2019 and on hanuary 10, 2020 assuming Bella makes the payments required under the contract. 2. James Company sells college textbools to State Unheralty. Under the terms of the contract, State University may return whatever textbooks it does not sell for a full refund no later than 120 doys from the date of dellvery. Bused on historic sales to State Unlveralty and other college book stores, 30% of the books delivered are returned for a full refund. On September 1, 2020, James dellvers books to State University with a sales velue of $400,000. The books have a cost to James of $100,000. State Unhersity Immedlately pays the amount owed upon dellvery. The accountant must prepare the financlal statement adjustins entries for the accounting perlod which ends September 30, 2020. As of that date, no bools have been returned by State Unlwersily. Required: Phease prepare the entry to relect the male of the boeks for James on September 1, 2020, and the necessary adjusting entry for September 30, 2020