Florrick Corporation began operations on January 1, 20x8. On that date, it acquired the following investments: 1. Bonds of Faber Corporation (FC) with a face value of $100,000 were acquired. At the date of acquisition, the market rate of interest was 6% and the coupon rate of interest was 8%. The bonds pay interest semi-annually on June 30 and December 31 and mature on December 31, 20x12. 2. 2,000 shares of Estes Company (EC) at a cost of $25 per share. No dividends were paid by EC during 20x8. Transaction costs of $1,200 were paid for this transaction. Required - a. Prepare the journal entries for the investment in the bonds of FC for the year 20x8 assuming Florrick uses the Amortized Cost method to account for the bonds. b. Assume that on December 31, 20x8, the market value of the FC bonds was $110,000. If Florrick classified the bonds as FVTPL: i. Prepare the journal entry at December 31, 20x8 to adjust the bonds to fair value. ii. What would be the interest revenue for the 6 months ended June 30, 20x9? c. Assume that 1,000 shares of EC were sold on July 1, 20x8, at a price of $30 per share. Transaction costs of $750 were paid for this transaction. The remaining shares had a market value of $35 per share on December 31, 20x8. Write all journal entries relative to the EC shares assuming that these are classified as Fair Value through Other Comprehensive Income. Florrick Corporation began operations on January 1, 20x8. On that date, it acquired the following investments: 1. Bonds of Faber Corporation (FC) with a face value of $100,000 were acquired. At the date of acquisition, the market rate of interest was 6% and the coupon rate of interest was 8%. The bonds pay interest semi-annually on June 30 and December 31 and mature on December 31, 20x12. 2. 2,000 shares of Estes Company (EC) at a cost of $25 per share. No dividends were paid by EC during 20x8. Transaction costs of $1,200 were paid for this transaction. Required - a. Prepare the journal entries for the investment in the bonds of FC for the year 20x8 assuming Florrick uses the Amortized Cost method to account for the bonds. b. Assume that on December 31, 20x8, the market value of the FC bonds was $110,000. If Florrick classified the bonds as FVTPL: i. Prepare the journal entry at December 31, 20x8 to adjust the bonds to fair value. ii. What would be the interest revenue for the 6 months ended June 30, 20x9? c. Assume that 1,000 shares of EC were sold on July 1, 20x8, at a price of $30 per share. Transaction costs of $750 were paid for this transaction. The remaining shares had a market value of $35 per share on December 31, 20x8. Write all journal entries relative to the EC shares assuming that these are classified as Fair Value through Other Comprehensive Income