Bonds and Journal entry

Apr 30 Answerl Answerl Answer! Answer To record dividends received Oct 31 Answer Answerl Answer! Answer To record unrealized gain on investment in Best Company Oct 31 Answer Answerl Answer Answer To record unrealized loss on investment in Engrid Company Oct 31 Answer Answer! Answerl Answer To record accrued interest revenue on bond investment3. The following are investment activities for Koko Company. 1) On January 31, 2020, Koko Company purchased a $27,000, 10-year bond at par with 4% interest paid annually on December 31. Koko Company is planning to hold this investment until maturity. 2) On February 10, 2020, Koko Company invested $16,000 in Best Company by purchasing 3,200 common shares. This is an insignificant investment in Best Company with the intention of selling it within a year. 3) On March 1, 2020, Koko Company made an investment of $184,800 in Engrid Company by acquiring 8% of its 154,000 outstanding common shares. Koko Company plans to hold on to these shares for at least a few years. 4) On April 1, 2020, Koko Company received a cash dividend from Best Company for a total of $1,830. 5) On April 30, 2020, Koko Company received a cash dividend from Engrid Company for a total of $1,870. 6) On Koko Company's year-end of October 31, 2020, Best Company's common shares were trading at $6.00 per share, and Engrid Company's shares were trading at $14.00 per share. Required Prepare journal entries using proper accounting methods for all transactions including the year end accrual of the bonds' interest. Round all answers to the nearest whole number. Date Account Title and Explanation Debit Credit Jan 31 Answer Answer Answer Answer To record purchase of bonds at par Feb 10 Answer Answer Answer Answer To record purchase of common shares as a short-term investment Mar 1 Answer Answer Answer Answer To record investment of common shares Apr 1 Answer Answer Answerl Answer To record dividends receivedPrepare the journal entry on May 1, 2020, to issue the bonds. Date Account Title and Explanation Debit Credit May 1 Answer Answer Answerl Answer Answerl Answerl Issued bond b) Prepare the journal entry on October 31, 2020, to record the first interest payment and the amorti- zation of the premium/discount. Date Account Title and Explanation Debit Credit Oct 31 Answerl Answer Answer Answer Answerl Answer Paid interest on bond c) Prepare the adjusting entry on December 31, 2020. Date Account Title and Explanation Debit Credit Dec 31 Answerl Answer Answer Answer Answer Answer Accrued interest on bond d) Show the balance sheet presentation of Bonds Payable and related accounts as at December 31, 2020. Bonds Payable $Answer Unamortized Discount $Answer Book Value $Answer4.On May 1, 2020, Cheng Company, a public company, acquired 194,700 of the 649,000 outstanding common shares from Zahra Company for a total of $1,503,000. This investment is part of Cheng Com- pany's long-term business diversification plan. Cheng Company's year-end is December 31. During 2020, the following investment activities occurred. 1) Zahra Company recorded an annual net income of $809,000 for its 2019-2020 fiscal year-end of June 30, 2020. 2) Zahra Company paid a cash dividend of $281,000 on July 30, 2020. Required Prepare journal entries to record the acquisition of shares by Cheng Company, the revenue of invest- ment from Zahra Company on June 30, 2020 and the receipt of cash dividends on July 30, 2020. Round all answers to the nearest whole number. Date Account Title and Explanation Debit Credit May Answer Answer Answer Answer To record acquisition of common shares Jun 30 Answerl Answer Answer Answer To record profit on equity investment Jun 30 Answer Answer Answer Answer To record dividends received on equity investment 5. Burroughs Corporation (with a December 31 year-end) issued $448,000, 2% bonds due in 9 years on May 1, 2020. Interest is paid semi-annually on October 31 and April 30 of each year. On the issuance date, the market rate of interest was 3%, resulting in a price of $412,900 for these bonds. The pre- mium/discount is amortized using the straight line amortization method. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. a) Is this bond issued at a discount or at a premium