Salt Foods purchases forty $$1,000,7\%,10-$year bonds issued by Pretzelmania, Incorporated, for $$37,282$ on January $1.$ The market interest rate for bonds of similar risk and maturity is $8\%.$ Salt Foods receives interest semiannually on June $30$ and December $31.$

& $2.$ 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.$)$

First National Bank buys and sells securities$.$ The company's fiscal year ends on December $31.$ The following selected transactions relating to First National's trading account occurred during the year.

December $20$ Purchases $300,000$ shares in Classic Computers common stock for $$1,500,000($ $$5$ per share$).$

December $28$ Receives cash dividends of $$6,000$ from the Classic Computers shares.

December $31$ The fair value of Classic Computers' stock is $$4\mathrm{.}80$ per share.

Required:

Record each of these transactions, including an adjusting entry on December $31$ for the investment's fair value, if appropriate. The investment in Classic Computers represents $3\%$ of total shares outstanding.

Calculate the balance of the Investments account on December $31,$ assuming the balance was $$0$ on December $1.$

Complete this question by entering your answers in the tabs below.