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Problem 5 (20 pts) ABC Company engaged in the following investment transactions during 2020 and 2021. 2020 Jan. 5 Purchased 15% of Quantas Corp. stock

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Problem 5 (20 pts) ABC Company engaged in the following investment transactions during 2020 and 2021. 2020 Jan. 5 Purchased 15% of Quantas Corp. stock (15,000 shares) for $900,000. April 1 Purchased 10% Bonds of Alpha Corporation bonds costing $600,000 at face value. These bonds are classified as available-for-sale. May 30 Sold half of its investment in Quantas stock for $460,000. Sep. 30 Received semiannual interest on Alpha Corporation Bonds. Nov. 10 Received dividend of S2 per share on remaining Quantus shares. Dec.31 Recorded any necessary adjusting entry(s) related to the above investments. Fair value of Quantas shares were $56 per share and the fair value of the Alpha Corp. bonds were $610,000. 2021 Jan. 5 Sold the Alpha Corp. bonds for $585,000. Required: Prepare all journal entries related to the above investments for 2020 and 2021

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