Colton's Western Wear Corp. (CWW) is a publicly reportable enterprise. Its year end is December 31. During 20X4 it invested some of its excess cash in various debt and equity securities. Pertinent details follow:

All dividend and interest payments were received on the scheduled payment dates.

CWW only updates the book value of its investments at the time of the transactions and at year end.

CWW elects to reclassify reserves (AOCI) to retained earnings immediately upon derecognition of investments in equity securities at FVOCI elect.

January 1, 20X4

Paid $2,600 to purchase 100 common shares of Zulu Inc. CWW elected to irrevocably classify the investment at FVOCI elect.

February 1, 20X4

Paid $11.65 per share to purchase 2,700 shares of PLZ Corp., a publicly traded company with over 1,000,000 shares outstanding.

July 1, 20X4

Paid $262,443 to acquire $250,000 of General Company Inc. six-year, 7% bonds. Interest is paid on June 30 and December 31 each year. CWW's objective of its business model for this investment is to hold the financial asset for purpose of collecting contractual cash flows.

Paid $96,490 to acquire $100,000 of Gidget Corp.'s four-year, 5% bonds. Interest is paid on June 30 and December 31 each year. CWW's business model for this investment is to hold the investment with a view to profiting from a decline in the market rate of interest.

December 15, 20X4

PLZ declared dividends of $1.00 per share, payable on January 5, 20X5.

Zulu declared dividends of $0.50 per share, payable on December 31, 20X4.

December 31, 20X4

Investment in

Market value

PLZ Corp. shares

$29.85 per share

Zulu Inc. shares

$24.00 per share

Market rate of interest

General Company Inc.'s bonds

5.5%

Gidget Corp.'s bonds

4.8%

January 1, 20X5

CCW reclassified its investment in General Company's bonds to at FVPL.

CCW reclassified its investment in Gidget's bonds to amortized cost.

July 1, 20X5

CCW sold all of its investments. The net proceeds of each sale follow:

Investment in

Sales price

PLZ Corp. shares

$27.50 per share

Zulu Inc. shares

$27.00 per share

General Company Inc.'s bonds

$258,000

Gidget Corp.'s bonds

$106,000

Required:

Prepare all journal entries to reflect the purchase, income recognition, revaluation, reclassification, and derecognition of the investments detailed in the question. Provide a separate journal entry for each event, date it, include a brief description of the pertinent details, and provide supporting calculations. Clearly indicate the nature of the investment in each journal entry, for example, at FVPL, at FVOCI, at FVOCI elect, or at amortized cost.