Exercise 12-26 Fair value option; available-for-sale investments [LO12-2, 12-3, 12-8]

Colah Company purchased $1 million of Jackson, Inc. 5% bonds at par on July 1, 2018, with interest paid semi-annually. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2018, the Jackson bonds had a fair value of $1.2 million. Colah sold the Jackson bonds on July 1, 2019 for $900,000.

1. The purchase of the Jackson bonds on July 1.
2. Interest revenue for the last half of 2018.
3. Any year-end 2018 adjusting entries.
4. Interest revenue for the first half of 2019.
5. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2019.

Required: 1. Prepare Colahs journal entries for above transaction.

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not in 6 Required 1 Required 2 Prepare Colah's journal entries for above transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) 0.83 points No Date General Journal Debit Credit Investment in Jackson bonds 1 July 01, 2018 1.000.000 Cash 1,000,000 December 31, 201 Cash 2 25,000 25,000 Interest revenue December 31, 201 Investment in Jackson bonds 3 Unrealized holding gain-NI 4 June 30, 2019 Cash Interest revenue Cash 5 July 01, 2019 Interest revenue Cash July 01, 2019 6 Loss on sale of investments Investment in Jackson bonds