Referring to information in Brief Exercise 14-18, assume that Henry Inc. sold its holdings of Container Corporation bonds on July 2, 2020, for \(\$ 4,800\).

a. Record the sale of the debt investment.

b. Adjust the Fair Value Adjustment account on December 31, 2020, the company's year-end.

Exercise 14-18

Henry Inc. purchased \(\$ 5,000\) of Container Corporation's \(5 \%\) bonds at par. The purchase is made on January 1 , 2020, and the investment is classified as a trading security. At June 30, 2020, Henry Inc. received semiannual interest of \(\$ 125\), and the fair value of the bonds was \(\$ 4,800\). Prepare Henry's journal entries for \((a)\) the purchase of the investment, \((b)\) the interest received, and \((c)\) the fair value adjustment.