Best Buddies Inc. You are the new accounting intern Best Buddies Inc (BBI), a profitable and established web-hosting service company. The company is owned by a public company and has chosen to follow IFRS for ease of consolidation with its parent company. Due to the pandemic, demand for web-hosting services increases significantly. As a result, BBI has a substantial cash balance accumulated and management needs to decide how to best utilize the cash sitting idle in the bank account After a board meeting late in 2020, BBI decided to significantly increase its investments this year. Management believes that the current economic environment will make it easy for them to profit from trading debt and equity securities amid the recent market fluctuations. As of December 31, 2021, BBI has several investments which are described below. I On January 1, 2021 BBI purchased 1,000 bonds with the face value of $1,000 each, an annual coupon rate of 6% payable on December 31 from Fast Track Inc. The bond matures in 5 years. The market rate at the time of purchase was 8%. As of December 31, 2021, the bond's fair value is $950,000. These bonds are actively traded in the market. Assume no transaction cost in this investment. BBI purchased on April 30, 2021 3,000 shares of Router Inc for $3,000,000. On August 1, BBI purchased 100 more shares at $500/share. On September 1, Router Inc. issued and paid dividends of $25 per share. On December 31, the shares were valued at $1,500/share. Commission for such purchase and sale is 1% on the value of the shares being traded each way (i.e. buy and sell). The management of BBI truly believes in taking care of its customers when possible. BBI actively looks for bond offerings of its customers. Essentially, BBI thinks that a customer falls on tough times and needs a cash injection, BBI is happy to purchase their privately issued bonds. However, BBI management are quite selective and not every customer is on their target list. Management's goal is to find companies that are not too high risk but also would be willing to pay a higher interest rate. Recently, BBI decided to purchase bonds from Retail Inc. On October 1, 2021, BBI purchased a $100,000, 3-year, 10% bond from Retail Inc. The effective interest rate is 14%. Interest is payable semi-annually on April 1 and October 1. Part C) Fast forward six months later, it is now June 30, 2022. The following transactions occurred in the first half of 2022: Management wants you to provide the journal entries for the below transactions, 1. On February 1, 2022, BBI sold the bonds from Fast Track Inc. for $980,000 plus accrued interest 2. On April 1, 2022, BBI received interest payment from Retail Inc.. 3. On June 30, 2022, BBI sold 500 shares of Router Inc. for $600,000