Smart Electronics is a publicly$-$traded corporation that specializes in manufacturing and distributing consumer electronics. In order to maximize its returns on surplus cash, the company decides to invest in available$-$for$-$sale securities$.($Available$-$for$-$sale securities are financial instruments that the company intends to hold for an indefinite period but may sell if the need arises or if market conditions are favorable$).$ Smart Electronics does not have significant influence in the investee companies.The details of the investments are given below.

Purchase Investment Details

$01/07/2023$

Purchased ADCB $12\%,3-$year bonds for $$4,333,266$ to yield an effective interest rate of $14\%.$ The issue price of the bonds is $4,400,000.$

$01/07/2023$

Purchased $$6,000,000$ worth common stock of $.$Alliance Insurance

$01/07/2023$

Purchased $$4,000,000$ worth common stock of Dubai Consultancy Services Limited.

Investment Revenue Details

$31/12/2023$

Received a semi$-$annual cash interest payment from Abu Dhabi Commercial bank

$31/12/2023$

Received a cash dividend of $$200,000$ from Alliance Insurance.

$31/12/2023$

Dubai Consultancy Services Limited does not pay any dividend.

Adjust Investment to fair value

$31/12/2023$

Valued the ADCB bonds at $$4,429,886.$

$31/12/2023$

Valued the Alliance Insurance Common stock at $$5,900,000$

$31/12/2023$

Valued the Dubai Consultancy Services Limited Common Stock at $$3,980,000$

Sale of Investments

$01/15/2024$

Sold ADCB bonds for $$4,450,000.$

$01/15/2024$

Sold Dubai Consultancy Services Limited Common Stock for $$4,892,000.$

Required

Record the purchase of investments by passing journal entries in the books of Smart Electronics Limited. $(7$ marks$)$

Record the receipt of investment revenue by passing journal entries in the books of Smart Electronics Limited. $(5$ marks$)$

Adjustment of Available for Sale Investment to Fair Value as on $31/12/2023(2$ marks$)$

Pass journal entries to record united unrealized holding gain$/$ loss. $(4$ marks$)$

Pass journal entries to record the sale of investments. $(7$ marks$)$