Hope Company bought 30% of Faith Corporation in 2020, and us…

Hope Company bought 30% of Faith Corporation in 2020, and uses the equity method to account for the investment.  Suppose that on the receipt of dividends, Faith made the entry:             Cash                                           $100,000                            Investment in Faith Corp.      $100,000 I think that it is the correct entry to make when an equity method investor receives dividends. What is the effect on Assets and Shareholder’s equity of this journal entry?             Assets                                    Shareholders’ equityA.        increase $100,000         increase $100,000B.        increase $100,000         decrease $100,000C.        decrease $100,000       decrease $100,000D.        no change                            no change

 Bonds are issued on June 1, 2020 that have interest payment…

 Bonds are issued on June 1, 2020 that have interest payment dates of April 1 and October 1. Consider the financial statements for the year ended December 31, 2020.  Bond interest expense and interest payable on the financial statements for the year ended December 31, 2020, is for a period of:          Interest expense            Interest payableA.        Seven months.             Three monthsB.        Seven months.             Seven monthsC.        Three months.             Seven monthsD.        Three months.             Three months