Colah Company purchased $1,100,000 of Jackson, Inc., 8% bonds at par on July 1, 2021, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2021, the Jackson bonds had a fair value of $1,310,000. Colah sold the Jackson bonds on July 1, 2022 for $990,000.

Required: 1. Prepare Colahs journal entries for the following transactions:

1. The purchase of the Jackson bonds on July 1.
2. Interest revenue for the last half of 2021.
3. Any year-end 2021 adjusting entries.
4. Interest revenue for the first half of 2022.
5. Any entries necessary upon sale of the Jackson bonds on July 1, 2022, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale.

2. Complete the following table to show the effect of the Jackson bonds on Colahs net income, other comprehensive income, and comprehensive income for 2021, 2022, and cumulatively over 2021 and 2022.

Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare Colah's journal entries for above transactions. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answer in whole dollars, not in millions.) No Date General Journal Debit Credit July 01, 2021 Investment in bonds W 1.100.000 Cash 1,100,000 December 31, 200 Cash Interest revenue 210,000 December 31, 200 Fair value adjustment Gain on investment (unrealized, NI) 210,000 June 30, 2022 44,000 Cash Interest revenue 44,000 5 July 01, 2022 320.000 Loss on investment funrealized. OCI) Fair value adjustment July 01, 2022 Fair value adjustment Reclassification adjustment (OCI) 2000 00 00 00 1.100.000 July 01, 2022 2022 Cash Gain on investment (unrealized, NI) Loss on investment (NI) Investment in bonds Required 1 Required 2 Fill out the following table to show the effect of the Jackson bonds on Colah's net income other comprehensive income and comprehensive Income for 2021 2022, and cumulatively over 2021 and 2022. (Negative amounts should be entered with minus sign. Enter your answer in whole dollars, not in millions.) Net Income OCI Comprehensive Income 2021 44.000 $ 210.000 $ 260,000 2022 44,000 $ (103.000 S (50.000) $ $ $ 88,000 107.000 191.000