Current Attempt in Progress

The following Handley Corporation transactions are for bonds that the company purchased as a trading investment for the year ended October $31,2024$:

Dec. $1$ Purchased $$392,000$ of Paleo Corporation $4\%$ bonds at $105($this means $105\%$ of face value$).$

Interest is received semi$-$annually on June $1$ and December $1.$ The bonds mature on December $1,2027.$

Jun. $1$ Received interest on Paleo bonds.

Jun. $2$ Sold $$98,000$ of the Paleo bonds at $106.$

Oct. $31$ Accrued interest on the remaining bonds.

Oct. $31$ The fair value of the remaining bonds was $103$ on this date.

$($a$)$

Record the above transactions, including any required adjusting entries, using the fair value through profit or loss model. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$

late

Account Titles and Explanation

Debit

Credit

Trading Investments

Cash

Cash

Interest Income

Realized Gain on Trading Investments

Trading Investments

Interest Receivable

Interest Income

$2$

Realized Gain on Trading Investments

Trading Investments

ct$.31v$

Interest Receivable

Interest Income

$($To record accrued interest of remaining bonds$)$

Unrealized Loss on Trading Investments

$($To record fair value of remaining bonds$)$