First Name: Last Name: CHAPTER 12 IN-CLASS EXERCISE 12 (10 points) Part 1 (2 points) Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2018, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate was 4% for bonds of similar risk and maturity. Lance Brothers paid S600,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (1) to record Lance Brothers' investment in the bonds on July 1, 2018, and (2) to record interest revenue on December 31, 2018, at the market interest rate. Part 2 (4 points) S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola common shares for $875,000. On December 31,2018, the shares had a fair value of $873,000. S&L Financial sold the shares on January 3, 2019, for $880,000. Prepare the journal entries (1) to record the purc hase of the investment on December 27, 2018, and (2) to adjust the investment to fair value on December 31, 2018, and (3) to record the sell of the investment on Januray 3, 2019