A company began operations on January 2, 2021, and on that date made the following investments 1 Bonds of Panda Corporation (PC) with a face value of $200,000 were acquired At the date of acquisition, the market rate of interest was 5 and the coupon rate of interest was 7 The bonds pay interest semi annually on June 30 and December 31 and mature on December 31, 2026 2 Purchased Linn Inc for $330,000 which is classified as an FVTPL investment The fair value on December 31, 2021, was $310,000 3 3,000 shares of Bates Company (BC) at a cost of $30 per share No dividends were paid by BC during 2021 Transaction costs of $1,500 were paid for the transaction Required Prepare the journal entries for the investment in PC bonds for the year 2021 assuming that the Amortized cost method is used to account for the bonds Assume that on December 31, 2021, the market value of the FC bonds was $220,000 If the company instead classified the bonds as FVTOCI i Prepare the journal entry at December 31, 2021 to adjust the bonds to fair value ii What would be the interest revenue for the 6 months ended June 30, 2022 Record the 2021 journal entries for Linn Inc to record the purchase and year end adjustment Assume that 1,500 shares of BC were sold on August 1, 2021, at a price of $36 per share Transaction costs of $1,000 were paid for this transaction The remaining shares had a market value of $38 per share on December 31, 2021 Write all journal entries relative to the BC shares assuming that these are classified as Fair Value through Other Comprehensive Income

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A company began operations on January 2, 2021, and on that date made the following investments: 1. Bonds of Panda Corporation (PC) with a face

A company began operations on January 2, 2021, and on that date made the following investments:

1. Bonds of Panda Corporation (PC) with a face value of $200,000 were acquired. At the date of acquisition, the market rate of interest was 5% and the coupon rate of interest was 7%. The bonds pay interest semi-annually on June 30 and December 31 and mature on December 31, 2026.

2. Purchased Linn Inc. for $330,000 which is classified as an FVTPL investment. The fair value on December 31, 2021, was $310,000.

3. 3,000 shares of Bates Company (BC) at a cost of $30 per share. No dividends were paid by BC during 2021. Transaction costs of $1,500 were paid for the transaction.

Required:

Prepare the journal entries for the investment in PC bonds for the year 2021 assuming that the Amortized cost method is used to account for the bonds.
Assume that on December 31, 2021, the market value of the FC bonds was $220,000. If the company instead classified the bonds as FVTOCI:

i. Prepare the journal entry at December 31, 2021 to adjust the bonds to fair value.
ii. What would be the interest revenue for the 6 months ended June 30, 2022?

Record the 2021 journal entries for Linn Inc. to record the purchase and year end adjustment
Assume that 1,500 shares of BC were sold on August 1, 2021, at a price of $36 per share. Transaction costs of $1,000 were paid for this transaction. The remaining shares had a market value of $38 per share on December 31, 2021. Write all journal entries relative to the BC shares assuming that these are classified as Fair Value through Other Comprehensive Income.