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Problem 5 (20 pts) ABC Company engaged in the following investment transactions during 2020 and 2021. 2020 Jan. 5 April 1 Purchased 10% of Quantas

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Problem 5 (20 pts) ABC Company engaged in the following investment transactions during 2020 and 2021. 2020 Jan. 5 April 1 Purchased 10% of Quantas Corp. stock (10,000 shares) for $840,000. Purchased 12% Bonds of Alpha Corporation bonds costing $400,000 at face value. These bonds are classified as available-for-sale. Sold half of its investment in Quantas stock for $395,000. May 30 Sep 30 Received semiannual interest on Alpha Corporation Bonds. Nov. 10 Received dividend of $1 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 $90 per share and the fair value of the Alpha Corp. bonds were $395,000 2021 Jan. 5 Sold the Alpha Corp. bonds for $410,000. Required: Prepare all journal entries related to the above investments for 2020 and 2021

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