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The following are investment activities for Moko Company. 1) On January 31, 2020, Moko Company purchased a $24,000, 9-year bond at par with 6% interest
The following are investment activities for Moko Company. 1) On January 31, 2020, Moko Company purchased a $24,000, 9-year bond at par with 6% interest paid annually on December 31. Moko Company is planning to hold this investment until maturity. 2) On February 10, 2020, Moko Company invested $17,500 in Bast Company by purchasing 3,500 common shares. This is an insignificant investment in Bast Company with the intention of selling it within a year. 3) On March 1, 2020, Moko Company made an investment of $103,180 in Elgin Company by acquiring 7% of its 134,000 outstanding common shares. Moko Company plans to hold on to these shares for at least a few years. 4) On April 1, 2020, Moko Company received a cash dividend from Bast Company for a total of $910. 5) On April 30, 2020, Moko Company received a cash dividend from Elgin Company for a total of $1,770. 6) On Moko Company's year-end of October 31, 2020, Bast Company's common shares were trading at $6.00 per share, and Elgin Company's shares were trading at $10.00 per share. Required Prepare journal entries using proper accounting methods for all transactions including the year end accrual of the bonds' interest. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and Explanation Debit Credit Jan 31 To record purchase of bonds at par Feb 10 To record purchase of common shares as a short-term investment Mar 1 To record investment of common shares Apr 1 To record dividends received Apr 30 To record dividends received Oct 31 To record unrealized gain on investment in Bast Company Oct 31 To record unrealized loss on investment in Elgin Company Oct 31 To record accrued interest revenue on bond investment
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