Clarke Investments completed the following investment transactions during 2024: (Click the icon to view the investment transactions.) Read the requirements. Requirement 1. Journalize Clarke'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 Clarke's investment on January 5, 2024. Date More Info -X Accounts and Explanation Debit Credit 2024 Jan. 5 Available-for-Sale Debt Investments 650,000 Cash 650,000 2024 Jan. 5 Purchased investment in bonds. Purchased Volcano Company's $650,000 bond at face value. Clarke classified the investment as available-for-sale. The Volcano bond pays interest at the annual rate of 8% on June 30 and December 31 and matures on December 31, 2027. Management's intent is to keep the bonds for several years. Received an interest payment from Volcano. Received an interest payment from Volcano. Adjusted the investment to its current market value of $644,000. Jun. 30 Dec. 31 Next, journalize the receipt of cash interest on June 30, 2024. Dec. 31 Date Accounts and Explanation Debit Credit 2024 Print Done Done Jun. 30 Cash 26,000 Interest Revenue 26,000 Choose from any list or enter any number in the input fields and then click Check Answer. Clarke Investments completed the following investment transactions during 2024. (Click the icon to view the investment transactions.) Read the requirements. Received cash interest. Requirements Finally, journalize the year-end adjustment, if any. Date Accounts and Explanation Debit Credit 2024 Dec. 31 Unrealized Holding Loss-Available-for-Sale 6,000 1. Journalize Clarke's investment transactions. Explanations are not required. 2. Prepare a partial balance sheet for Clarke's Volcano investment as of December 31, 2024. 3. Prepare a comprehensive income statement for Clarke Investments for year ended December 31, 2024. Assume net income was $300,000. Fair Value Adjustment-Available-for-Sale 6,000 Adjusted available-for-sale debt investment to market value. Print Done Requirement 2. Prepare a partial balance sheet for Clarke's Volcano investment as of December 31, 2024. Jse the partial balance sheet below to show how to report the investment on Clarke'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 mpty; do not select a label or enter a zero.) Clarke Investments Balance Sheet (Partial) December 31, 2024 Current Assets: ements 6,000 i larket value. ano investment as of December 31, 2024. Available-for-Sale Debt Investment (at cost) Available-for-Sale Debt Investment (at fair value) Held-to-Maturity Debt Investment (at cost) Held-to-Maturity Debt Investment (at fair value) Trading Debt Investment (at cost) Trading Debt Investment (at fair value) Unrealized Holding Gain-Available-for-Sale Unrealized Holding Gain-Held-to-Maturity Unrealized Holding Gain-Trading Unrealized Holding Loss-Available-for-Sale Unrealized Holding Loss-Held-to-Maturity Unrealized Holding Loss-Trading estment on Clarke's balance sheet at December 31, 2024. Long-term Assets: Stockholders' Equity Read the requirements. Fair Value Adjustment-Available for Sale 6,000 Adjusted available-for-sale debt investment to market value. Requirement 2. Prepare a partial balance sheet for Clarke's Volcano investment as of December 31, 2024. Use the partial balance sheet below to show how to report the investment on Clarke'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 empty; do not select a label or enter a zero.) Clarke Investments Balance Sheet (Partial) December 31, 2024 Current Assets: Requirements Long-term Assets: Stockholders' Equity Accumulated Other Comprehensive Income: 1. Journalize Clarke's investment transactions. Explanations are not required. 2. Prepare a partial balance sheet for Clarke's Volcano investment as of December 31, 2024. 3. Prepare a comprehensive income statement for Clarke Investments for year ended December 31, 2024. Assume net income was $300,000. Print Done Choose from any list or enter any number in the input fields and then click Check Answer. CIRCLARISwer Clear All