Question

The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each bond acquired is purchased with the intention to actively trade. 2020 Feb. 1 Paid $121,000, plus $200 in transaction fees to purchase a $125,000, four-year, 3.5% bond payable of Capital Inc. dated Feb. 1. Interest is paid semiannually beginning August 1. Mar. 29 Bought 101,000 common shares of Regina Inc. for a total of $86,456, plus paid an extra $500 for transaction fees. May 7 Regina Inc.'s board of directors declared a total dividend of $526,000 regarding the total 3,500,000 shares issued and outstanding. The date of record is May 30, payable June 15. June 1 Paid $140,000 including $500 in transaction fees to purchase a five-year, 6.5%, $137,000 bond payable of Yates Corporation. Interest is paid annually each May 30. 15 Received a cheque regarding the dividends declared on May 7. Aug. 1 Received a cheque from Capital Inc. regarding semiannual interest. 1 Sold the Capital Inc. bond at 98. 17 Purchased 76,000 Tech Inc. common shares at $6.20 plus $400 in transaction fees. Dec. 1 Sold 76,000 of the Regina Inc. shares at $0.95 and incurred $250 in transaction fees. 31 Accrued interest on the Yates bond. Fair values of the equity securities on this date were Regina, $1.00; Tech Inc., $5.60. Assume that the carrying value of the Yates bond was equal to its fair value. 2021 May 30 Received a cheque from Yates Corporation regarding annual interest. Prepare entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)

I am having trouble with Dec 31 (Record fair value adjustment at year end) and May 30 (Record the collection of interest). I dont need the other journal entries I only need these two I've posted this question 4 times already and all the answers that they gave me are all wrong for these two journal entries. I would really appreciate it thanks.

Answer 1

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Date	Account	Debit	Credit
Feb 1 2020	Investment-Capital Bond	$                      121,000
	Transaction Fee Expense	$                              200
	Cash		$     121,200
Mar 29 2020	Investment-Regina Shares	$                        86,456
	Transaction Fee Expense	$                              500
	Cash		$       86,956
May 7	No Entry
Jun 1	Investment-Yates Bonds	$                      139,500
	Transaction Fee Expense	$                              500
	Cash		$     140,000
Jun 15	Cash	$                        15,179
	Dividend Income		$       15,179
	$526,000/3,500,000*101,000
Aug 1	Cash	$                           2,188
	Interest Income		$          2,188
	$125,000*3.5%*6/12
Aug 1	Cash ($125,000*98%)	$                      122,500
	Investment Income(Loss)		$          1,500
	Investment-Capital Bond		$     121,000
Aug 17	Investment-TEch Shares (76,000*$6.20)	$                      471,200
	Transaction Fee Expense	$                              400
	Cash		$     471,600
Dec 1	Cash (76,000*$0.95)-$200	$                        71,950
	Transaction Fee Expense	$                              250
	Investment-Regina Shares ($86,456/101,000*76,000)		$       65,056
	Investment Income(Loss)		$          7,144
Dec 31	Interest Receivable	$                           5,195
	Interest Income		$          5,195
	$137,000*6.5%*7/12
Dec 31	Investment-Regina Shares	$                           3,600
	Investment Income(Loss)	$                        42,000
	Investment-TEch Shares		$       45,600
	Investment	Balance at Dec 31	Fair Value	Difference
	Regina (25,000*$1 Fair Value)	$                        21,400	$       25,000	$          3,600
	Tech (76,000*$5.60)	$                      471,200	$     425,600	$      -45,600
		$                      492,600	$     450,600	$      -42,000
May 30	Cash $137,000*6.5%	$                           8,905
	Interest Receivable		$          5,195
	Inerest Income		$          3,710