Please click the attachment to view the assignment.

**ASSIGNMENTS MUST BE COMPLETED USING EXCEL FORMAT**

Assignment 1: Accounting for bond investments

Suppose Hale and Sons purchase $800,000 of 5% annuals bonds of McPhee Corporation at face value on January 1, 2014. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2018. Hale intends to hold the McPhee bond investment until maturity.

Requirements:

1.) Journalize Hale and Sons’ transactions related to the bonds for 2014.

2.) Journalize the entry required on the McPhee bonds maturity date. (Assume the last interest payment has already been recorded.)

Assignment 2: Accounting for stock investments

The beginning balance sheet of Text Source Co. included an $800,000 investment in Parson stock (20% ownership). During the year, Text Source completed the following investment transactions:

Mar. 3 Purchase 6,000 shares at $9 per share of Andy Software common stock as a long-term, available-for-sale investment, representing 5% ownership.

May 15 Received a cash dividend of $0.40 per share on the Andy investment.

Dec. 15 Received a cash dividend of $80,000 from Parson investment.

31 Received Parson’s annual report showing $300,000 of net income.

31 Received Andy’s annual report showing $200,000 of net income for the year.

31 Parson’s stock fair value at year-end was $780,000.

31 Andy’s common stock fair value at year-end was $10 per share.

Requirements:

1.) Journalize the transactions for the year if Text Source.

2.) Post transactions to T-accounts to determine the December 31 balances related to the investment and investment income accounts.

3.) Prepare Text Source’s partial balance sheet at December 31 from your answers in Requirement 2.