Using the data in EA-2, assume that Slick Rocks’ management purchased the Sandstone bonds for the trading securities portfolio instead of the available-for-sale securities portfolio. Prepare any journal entries that are required by the facts presented in the case.

Data from in EA-2

On July 1, 2024, Slick Rocks, Inc., purchased at par $350,000, 6 percent bonds of Sandstone Company as an investment that the management intends to hold for a few years but not to maturity. The bonds pay interest each June 30 and December 31. Slick Rocks’ fiscal year ends on December 31. The following information pertains to the price of the Sandstone bonds:

Slick Rocks sold the Sandstone bonds on June 30, 2026, at a price of $353,000. Prepare any journal entries that are required by the facts presented in the case.

Transcribed Image Text:

12/31/2024 12/31/2025 Bond Price $356,000 352,000