The following are selected transactions entered into by Sol Electronics which started on April 1, 2019. The company’s accounting year end is December 31.

2019

On April. 1, Company issued 50,000 shares of $5 par-value ordinary shares at $8 dollars per share

On May 1, Company issued 5-year bond with 4% contractual interest rate and face value of $10,000. The maturity date is May 1, 2024. The market interest rate on May 1. 2019 was 3%. Interest is payable annually starting from May 1, 2020. Please calculate the bond issuance price and journalize – please show your computation.

On June 1, Company issued additional 10,000 ordinary shares at $9 dollar per share.

On July 1, Company acquired 5,000 shares of its own ordinary shares for the treasury at $10 dollars per share.

On September 1, Company sold 1,000 shares of treasury shares held at $12 per share

On October 31, Company acquired 30% of the 10,000 outstanding shares of Best Electronics Outlet at a cost of $50 per share.

On October 31, Company sold 3,000 shares of treasury shares at $8 per share.

On Dec 10, Best Electronics Outlet paid dividends of $1 per share.

On Dec. 15, Company declared cash dividend of $0.5 per share to shareholders of record on December 20 and payment date is December 31.

On Dec 20, Company acquired 500 shares of Tesla Inc ordinary shares at $200 per share. The investment in Tesla Inc will be classified as “non-trading”. The company intends to sell the investment within one year.

On Dec 31, Company paid cash dividends.

On Dec 31, Best Electronics Outlet reported a net income of $150,000 for the year.

On Dec 31, Tesla stock was closed at $250 per share in the NASDAQ. exchange

a. Please prepare journal entries for the above transactions in 2019.

b. Please prepare interest expenses accrual and amortization of bond premium on December 31, 2019

c. Please describe how investment in Tesla stock investment will be reported under the current asset of 2019 balance sheet. Please explain why