Castle Investments completed the following investment transactions during 2024: ... Requirement 1. Journalize Castle's investment transactions. Explanations are not required. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Begin by journalizing Castle's investment on January 5, 2024. Date Accounts and Explanation Debit - Credit More info 2024 Jan. 5 Available-for-Sale Debt Investments 625.000 Cash 625,000 2024 Jan. 5 Purchased investment in bonds. Purchased Valant Company's $625,000 bond at face value. Castle classified the investment as available-for-sale. The Valant bond pays interest at the annual rate of 10% on June 30 and December 31 and matures on December 31, 2029. Management's intent is to keep the bonds for several years. Received an interest payment from Valant. Received an interest payment from Valant Adjusted the investment to its current market value of $615,500. Jun. 30 Next, journalize the receipt of cash interest on June 30, 2024. Dec. 31 Date Accounts and Explanation Debit Credit Dec. 31 2024 Jun 30 Cash 31,250 Interest Revenue 31,250 Print Done Received cash interest. Now journalize the receipt of cash interest on December 31, 2024. Date Accounts and Explanation Debit Credit Requirements 2024 Dec. 31 Cash 31,250 Interest Revenue 31,250 1. Journalize Castle's investment transactions. Explanations are not required 2. Prepare a partial balance sheet for Castle's Valant investment as of December 31, 2024 3. Prepare a comprehensive income statement for Castle Investments for year ended December 31, 2024. Assume net income was $220,000. Received cash interest Finally, journalize the year-end adjustment, if any. Date Accounts and Explanation Debit Credit Print Done 2024 Dec. 31 9,500 Unrealized Holding Loss-Available-for-Sale Fair Value Adjustment-Available-for-Sale 9,500 Adjusted available-for-sale debt investment to market value. Requirement 2. Prepare a partial balance sheet for Castle's Valant investment as of December 31, 2024. Use the partial balance sheet below to show how to report the investment on Castle's balance sheet at December 31, 2024. (Use a minus sign or parentheses to enter a loss. If a box is not used in the balance sheet, leave the box empty, do not select a label or enter a zero.) Castle Investments Balance Sheet (Partial) December 31, 2024 Current Assets: Long-term Assets Available-for-Sale Debt Investment (at fair value) $ 615,500 Stockholders' Equity Accumulated Other Comprehensive Income: Unrealized Holding Loss-Available for Sale $ 19,500) Requirement 3. Prepare a comprehensive income statement for Castle Investments for year ended December 31, 2024. Assume net income was $220,000. (Use a minus sign parentheses to enter a loss.) Castle Investments Comprehensive Income Statement For the Year Ended December 31, 2024 Net Income Other Comprehensive Income: Comprehensive Income (Loss)
