Question 1

On December 28, Summit purchased Microsoft common shares for $466,000. On December 31, the shares had a fair value of $468,000. Record the initial investment by Summit and, if appropriate, an adjustment to record the investment at fair value. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1. Record the purchase of the investment.

Date	General Journal	Debit	Credit
December 28

2. Record adjusting entry of investments to fair value.

Date	General Journal	Debit	Credit
December 31

Question 2

Salt Foods purchases fifty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $53,897 on January 1. The market interest rate for bonds of similar risk and maturity is 5%. Salt Foods receives interest semiannually on June 30 and December 31. 1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole number.)

1. Record the investment in bonds.

Date	General Journal	Debit	Credit
January 01

2. Record the receipt of the first interest payment.

Date	General Journal	Debit	Credit
June 30