On June 1, Pane purchases 6,000 shares of Crane stock and 4,000 shares of Lane stock. At the time of purchase, the Crane and Lane stocks have a readily determinable fair value of $30 and $65, respectively.

On June 5, Pane sells an investment classified as available-for-sale for $200,000. The debt securities were purchased at par value during the prior year for $150,000. At the end of the prior year, the securities were valued at$170,000

. On June 7, Pane declares cash dividends for preferred ($20,000) and common ($25,000) stock payable to stockholders of record on June 19. Instead of immediately reducing retained earnings, Pane uses the Dividends Declared account

On July 1, Pane issues $1,000,000 of 10 percent bonds dated July 1 for $968,327. The bonds are due in 4 years, pay interest semi-annually (on January 1 and July 1), and are issued to yield 11 percent. Record the issuance of the bonds

Make journal entries.