Robertson Corporation carries an account in its general ledger called Investments, which contains the following debits for investment purchases and no credits.

$1.$ Feb. $1,2017$ Jordan Company common stock, $$100$ par, $200$ shares

$ $37,400$

$2.$ April $1$ U$.$S$.$ government bonds, $5\%,$ due April $1,2027,$ interest payable April $1$ and October $1,100$ bonds at $$1,000$ each $5100,000$

$3.$ July $1$ Driver Company $6\%$ bonds, par $$50,000,$ dated March $1,2013,$ purchased at par plus accrued interest,

interest payable annually on March $1,$ due March $1,2037$

$$51,000$

Instructions

$($a$)$ Prepare entries necessary to classify the amounts into proper accounts, assuming that all the bonds are classified as available$-$for$-$sale.

$($b$)$ Prepare the entry to record the accrued interest on December $31.2017.$

$($c$)$ The fair values of the securities on December $31,2017,$ were:

$$ Jordan Company common stock $ $33,800(1\%$ of total shares$)$

$$ U$.$S$.$ government bonds $124,700$

$$ Driver Company bonds $58,600$

$$ What entry or entries, if any, would you recommend be made?

$($d$)$ The U$.$S$.$ government bonds were sold on July $1,2018,$ for $$119,200$ plus accrued interest. Give the proper entry.

$($e$)$ Now assume Robertsons investment in Jordan Company represents $30\%$ of Jordan's shares.

Prepare the $2017$ entries for the investment in Jordan stock. In $2017,$ Jordy declared and paid dividends of $59,000($on September $30)$ and reported net income of $830,000.$