Question

On January 1, 2015, Fine Corporation purchased a held-for-collection debt investment from Henry Inc. for €65,118,...

On January 1, 2015, Fine Corporation purchased a held-for-collection debt investment from Henry Inc. for €65,118, with

a 6% return. The 5-year bond of Henry Inc. has a par value of €60,000 and nominal rate of 8%. The bond pays interest

twice a year, on January 1 and July 1 every year.

Fine Corporation also purchased 400 ordinary shares of Shark Inc. for €13,200 on March 20, 2015. Fine Corporation has

an active trading business model for this investment. On July 30, 2015, Fine Corporation received a cash dividend of

€3.25 per share. On December 31, 2015, the stock price of Shark Inc. is €34.50 per share.

Suppose you are working in Fine Corporation, please do the following:

1. Prepare all the journal entries related to the bond investment in 2015 (write necessary calculations if any.)

2.  Prepare all the journal entries related to the share investment in 2015 ( write necessary calculations if any. )

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