At December 31, 2020, the investments in the portfolio of the trading securities of Kennedy Company included the following.

Required

a. Record the entry for the receipt of quarterly interest from the Atlanta Corp. bonds on December 31, 2020.

b. Record the entry for the receipt of semiannual interest from the Dallas Inc. bonds on December 31, 2020.

c. Record the entry to adjust the bonds to fair value on December 31, 2020. The fair value of the Atlanta Corp. bonds and the Dallas Inc. bonds on December 31,2020 , were \(\$ 110,000\) and \(\$ 45,000\), respectively.

d. Indicate the total amount to be included on the December 31, 2020, balance sheet of Kennedy Company as investments in trading securities.

e. Record the entry to sell the Atlanta Corp. bonds on January 2, 2021, for \(\$ 112,500\). First adjust the bonds to fair value and then eliminate the associated Fair Value Adjustment account upon the sale of the securities.

f. Record the entry to sell the Dallas Inc. bonds on January 3, 2021, for \(\$ 44,500\). First adjust the bonds to fair value and then eliminate the associated Fair Value Adjustment account upon the sale of the securities.
g. Determine the investment related impact on net income in 2020 and 2021.

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Security Atlanta Corp. bonds, 5%, $100,000. Dallas Inc. bonds, 4%, $50,000 Purchase Date Original Purchase Price October 1, 2020 July 1, 2020 $100,000 50,000