3. (18%) On January 1, Heiress Company had surplus cash and decided to make long-term investments. The following transactions occurred during the year: Jan. 1 July 1 Dec . 31 Purchased forty $2,500, 10% bonds of McComb Corporation at face value. Semiannual interest payment dates are January 1 and July 1 each year. The bonds are classified as FVTOCI financial assetsdebt. Received a semiannual interest payment on the McComb Corporation bonds. Sold all bonds of McComb Corporation at $150,000. Required: Prepare journal entries for these transactions.

4. (18%)Tai Ping Carpets International Company had the following transactions in 2018. Jan.1 July 1 Dec.1 Purchased bonds of Ropa Corporation for NT$50,000 as a long-term investment. The 10- year bonds pay interest every year at a rate of 8% and the market rate is 8%. Received semiannual interest on Ropa Co. bonds. Received semiannual interest and sold half of bonds for $30,000. Prepare journal entries to record transactions during 2018.