help

E12-3 Brook Company Ltd. purchased 70 Meissner Company AG 9%, 10-year, 1,000 bonds on January 1, 2017, for 70,000. The bonds pay interest annually on January 1. On January 1, 2018, after receipt of interest, Brook Company sold 40 of the bonds for 40,300. Instructions Prepare the journal entries to record the transactions described above. E12-4 Diann Company Ltd. had the following transactions pertaining to share investments. Feb. 1 Purchased 600 ordinary shares of Ronn (2%) for 6,200. July 1 Received cash dividends of 1 per share on Ronn ordinary shares. Sept. 1 Sold 300 ordinary shares of Ronn for 4,300. Dec. 1 Received cash dividends of 1 per share on Ronn ordinary shares. Instructions (a) Journalize the transactions. (b) Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement