Return to S16–3, the Heinz Ltd. investment in Kuzawa Corporation bonds. Journalize the following transactions on Heinz Ltd.’s books, along with an explanation:

1. Purchase of the bond investment on January 2, 2020. As Heinz Ltd. expects to hold the investment to maturity, it is classified as a long-term investment.

2. Receipt of the annual cash interest on December 31, 2020. 

3. Amortization of the discount on December 31, 2020. 4. Collection of the investment’s face value at its maturity date on December 31, 2024. (Assume that the interest and amortization of discount for 2024 have already been recorded, so you may ignore these entries.)

S16–3

All Corp. completed the following investment transactions during 2019 and 2020:

2019

Dec. 12 Purchased 1,500 shares of Blackmore Ltd. at a price of $62.00 per share, intending to sell the investment within the next year. Brokerage commission fees were $510.

21 Received a cash dividend of $0.48 per share on the Blackmore Ltd. shares.

31 Adjusted the investment to its fair value of $61.50 per share.

2020

Jan. 16 Sold the Blackmore Ltd. shares for $59.00 per share, less brokerage commissions of $490.

1. Classify All Corp.’s investment as short-term or long-term.

2. Journalize All Corp.’s investment transactions. Explanations are not required.