P1. On January 1, 2015, BROWN Company purchased 7%, 10-year bonds with a face value of $2,000,000at $1,800,000

P1. On January 1, 2015, BROWN Company purchased 7%, 10-year bonds with a face value of $2,000,000at $1,800,000. The interests will be paid annually on December 31. BROWN uses the straight-line methodto amortize the discount on bonds and the calendar year for its fiscal period. The fair market values of thebonds were $1,900,000 on 12/31/2015 and $1,890,000 on 12/31/2016. BROWN sold the bonds for$1,990,000 on 1/1/2017.Instructions: Presume that BROWN classified the bond investments as available for sales security.Prepare any necessary journal entriesa. for the acquisition of the bonds on 1-1-2015.b. the receipt of interest and premium amortization on 12/31/2015 and 12/31/2016.c. any unrealized holding gain or loss as of 12/31/2015 and 12/31/2016d. the sales of the bond investment on 1/1/2017 P2. On January 2, 2015, BROWN co. purchased 30,000 shares of common stock, representing 30%ownership interest of BOBCATS co., for $1,200,000. In January 2016, BOBCATS reported net income of$400,000 for the year 2015 and declared and paid cash dividends of $150,000.Instructions: Using the equity method, prepare any necessary journal entries of BROWN fora. the purchase of the common stocks on 1/2/2015.b. its share in BOBCATS’ net income for 2015.c. dividends payments in 2016. P3. PHIL Construction, Inc. had a 3-year project whose contract price was $8,000,000. Constructionactivities are summarized in the table below. Costs to dateAdditional costs tocompleteProgress billings to dateCash collected to date 12/31/142,000,0003,000,000 12/31/155,000,0001,000,000 12/31/166,000,000-0- 2,500,0002,300,000 5,500,0005,400,000 8,000,0008,000,000 Instructions: Prepare any necessary journal entries for the above project in 2014, 2015 & 2016 using1) the percentage of completion method, 2) the completed contract method. P4. On 1/1/2015, PHIL Company sold merchandise with a cost of $60,000 for $100,000 with 10% downpayment and the remaining 90% on the installment basis over 3 years. The annual payment will be madeat the end of each year starting from 12/31/2015. PHIL repossessed the merchandise from the customerdue to default payments on 1/1/2017 when the fair value of the repossessed merchandise was $25,000.PHIL used the effective interest method and 8% interest rate for the installment sales.Insructions:1) Compute the payment per year for the installment sales,2) Prepare any necessary journal entries for the following transactions using the installment salesmethod.a. For the sale and the adjustment to defer the gross profit in 2015. b. For the payments received in 2015 (record the annual total).c. For the recognition of the gross profit realized in 2015.d. For the payments received in 2016 (record the annual total).e. For the recognition of the gross profit realized 2016.f. For the repossessed merchandise on 1/1/2017.