Prepare the journal entries for the issue of shares, issue of the bonds and the dividends, plus all the investments made during the year, 2021 . Also prepare adjustments at year end to accrue interest on the bond and to record change to any applicable investments:

Razul took the proceeds from dissolving the partnership and purchased a corporation selling electrical parts used for large production companies. He employs several people, but is looking to expand his operations further. In addition to expanding the sales of electrical parts, he also wants to start selling heating, ventilation and air conditioning (HVAC) parts and machinery through a separate division of the company called 'HVAC Parts & Machinery.' Currently, Razul owns all the shares in the corporation. To raise the needed cash, he decides to offer common and preferred shares for sale to investors starting in 2021. Below is the balance sheet at the end of 2020.

2020	2021
Holister Electric Inc.
Balance Sheet
As at December 31, 2020
Assets					Liabilities
Cash			$29,250		Accounts Payable			$33,150
Accounts Receivable			20,160		Unearned Revenue			10,160
Prepaid Insurance			12,400		Bank Loan			37,000
Inventory			83,740		Total Liabilities			80,310
Property, Plant & Equipment			215,000		Shareholders' Equity
Accumulated Depreciation			-46,000		Common Shares - 120,000 issued			120,000
					Retained Earnings			114,240
					Total Shareholder's Equity			234,240
Total Assets			$314,550		Liabilities & Owner's Equity			$314,550

At 2020, Razul has authorized 180,000 common shares and 14,000 preferred shares. The preferred shares will be cumulative and pay $7 dividends. The 120,000 shares issued were issued to Razul. He will maintain control of the company and sit on the board of directors.

- On January 1, Holister purchased a strategic investment of 21,000 shares in Gregor Inc. for $17 per share. This represents 32% of Gregor Inc. common shares. On December 31, Gregor Inc. declares and pays a $104,000 dividend and reports a net income of $420,400. Holister will use the equity method to record this investment.

- On January 1, Razul has located a few private investors that wish to purchase shares in the new corporation. Some want common shares, while other are interested in preferred shares. Holister Electric Inc. issued 40,000 common shares for $100,000 cash and issued 9,000 preferred shares for $36,000 cash.

- On March 1, Holister Electric Inc. issued and sold $300,000, 9 year bonds with an interest rate of 9%. The market rate at the time of issue was 10%. Any premium or discount on the bond is amortized using the effective interest rate method. Interest will be paid annually on February 28. The Present value of 1 and annuity of 1 of 10% for 6 periods are 0.4241 and 5.759, respectively. Use a 4 decimal factor for the bond calculation.

- On April 1, the company has extra cash on hand and would like to invest it in short-term bonds issued by Gamma Ltd. The company bought 26, $1,600 short term (one-year) bonds at par on this date and intended to sell these bonds before maturity. The interest rate on the bond is 10%, payable annually at March 31. On December 31, 2021, each bond was trading in the market at $1,900. On January 1, 2022, all bonds were sold for $44,460.

- On July 1, Holister purchased a $72,100, 7 year bond paying 14%. Interest is paid every 6 months on December 31 and June 30. The company plans to hold onto the bond until it matures.

- On November 23, the company purchased 3,800 shares of Daenerys Inc. at $22 per share for the purpose of trading. The shares are less than 11% of the total shares of Daenerys Inc. and are a non-strategic investment. By December 31, the price per share had gone up to $25 per share.

- During 2021, Holister Electric Inc. has performed well, so the board of directors decided to pay dividends. On November 30, 2021, the company declared cash dividends of $95,000, which will be paid out on December 15, 2021. Use the cash dividends method and close cash dividends at the end of the year.

Date	Account Title and Explanation					DR	CR