Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2020 Mar. 1 Paid $71,988 to purchase a $71,000, two-year, 9.4 bond payable of Action Corporation dated March 1. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Apr. 16 Bought 2,558 common shares of Brandon Motors at $25.50. May 2 Paid $49,968 to purchase a five-year, 6.58%, $51,900 bond payable of Collingwood Corporation. Interest is paid annually each April 30. June 1 Received a cheque from Action Corporation regarding quarterly interest. Aug. 1 Brandon Motors' board of directors declared a dividend of $0.75 per share to shareholders of record on August 10, payable August 15. 15 Received the Brandon Motors dividend. Sept. 1 Received a cheque from Action Corporation regarding quarterly interest. 17 Purchased 26,100 Dauphin Inc. common shares at $3.48. Oct. 20 Sold the Brandon Motors shares at $31.00. Dec. 1 Received a cheque fron Action Corporation regarding quarterly interest. 1 Sold the Action Corporation bond at 101. 31 Accrued interest on the Collingwood bond. The fair value of the equity security on this date was Dauphin, $3.70. The carrying value equalled the fair value for the Collingwood bond. 2021 Apr. 30 Received a cheque from Collingwood Corporation regarding annual interest. View transaction list X 14 > Id as an 1 Record the purchase of $71,000, 2-year, 9.0% bond payable to be held as an investment. 2 Record the purchase of investment. 3 Record the purchase of 5-year, 6.500%, $51,000 bond payable to be held as an investment. 4 Record the collection of interest. $ Record the declaration of dividend. 6 Record the collection of dividend income. 7 Record the collection of interest income. = journal entry has been entered Credit Note : View transaction list 14 > Id as an Credit 7 Record the collection of interest income. 8 Record the purchase of investment. 9 Record the sale of investment. 10 Record the collection of interest. 11 Record the sale of investment 12 Record the accrual of interest. 13 Record the fair value adjustment at year end. 14 Record the collection of interest. Note : - journal entry has been entered Record entry Clear entry View general journal Analysis Component: If the fair value adjusting entry on December 31, 2020, were not recorded, what would the effect be on the income statement and balance sheet? Income Statement Balance Sheet
