Question 3) Accounting for debt investments Suppose Elit Eletronic buys $500,000 of Tecno Boom Corps. bonds at face value on January 2, 2018. The Tecno Boom Corp. bonds pay interest at the annual rate of 7% on June 30 and December 31 and mature on December 31, 2032. Elit Eletronic intends to hold the investment until maturity. Requirements 1. Journalize any required 2018 entries for the bond investment. 2. How much cash interest will Elit Eletronic receive each year from Tecno Boom Corp.? 3. How much interest revenue will Elit Eletronic report during 2018 on this bond investment?

Question 4) accounting for equity investments: TBC Investments completed the following transactions during 2018:

Jan. 14	Purchased 700 shares of Ultra corporation stock, paying $53 per share. The investment represents 45% ownership in Ultra corporations voting stock and Tbc investment has significant influence over Ultra Corporation. TBC investment intends to hold the investment for the indefinite future
Aug. 22	Received a cash dividend of $0.84 per share on the Ultra corporation stock.
Dec. 31	Ultra corporation stock current market value is $52 per share.
Dec. 31	Ultra corp. reported net income of $150,000 for the year ended 2018

Requirements 1. Journalize TBC INVESTMENTs transactions. Explanations are not required. 2. Classify and prepare partial financial statements for TBC investments 45% Ultra corp. investment for the year ended December 31, 2018.