Problem 12-11A The following bond transactions occurred during 2018 for the University of Higher Learning (UHL) and Covington Ltd.: Feb. 1 UHL issued $10,400,000 of five-year, 3% bonds at 94 (this means 94% of maturity value) at a price to yield a market interest rate of 4.3%. The bonds pay Interest semi-annually on August 1 and February 1. 1 Covington Ltd. purchased $3,100,000 of UHL's bonds at 94 as a long-term investment that was to be held to maturity Aug. 1 The semi-annual interest on the bonds was paid. Prepare all required journal entries for Covington Ltd., the investor, to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no antry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Tities and Explanation Debit Credit Feb. 1 Aug. 1 How would the journal entries for Covington Ltd. change if the investment had been purchased for trading purposes? (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Prepare all required entries for UHL, the investee, to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Feb. 1 Aug. 1