Entries for Investment in Bonds, Interest, and Sale of Bonds Gonzalez Company acquired $202,800 of Walker Co., 4% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $49,200 of the bonds for 96. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 b. The semiannual interest received on November 1. Nov. 1 c. The sale of the bonds on November 1. Nov. 1 d. The accrual of $1,024 interest on December 31. Dec. 31 Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 96,000 shares of Silva Company directly from one of the founders for a price of $54 per share. Silva has 300,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $235,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $897,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Year 1, July 2 Year 1, Dec. 31 b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock. Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 9,300 shares of Bengals Inc, common stock purchased on September 12, Year 1, for $12 per share including brokerage commission. These shares were classified as available for sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $10 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 Year 1 Dec. 31 0 b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements? Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the