I need help please
Exercise 12-12 (Algo) Available-for-sale securities (LO12-1, 12-4) Colah Company purchased $2,000,000 of Jackson, Inc., 6% 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 $2,300,000. Colah sold the Jackson bonds on July 1, 2022 for $1,800,000. Required: 1. Prepare Colah's journal entries for the following transactions: a. The purchase of the Jackson bonds on July 1. b. Interest revenue for the last half of 2021 c. Any year-end 2021 adjusting entries. d. Interest revenue for the first half of 2022. e. 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 Colah's 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. Required 1 Required 2 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 milions.) Date General Journal Dobit Credit July 01, 2021 Investment in bonds 2,000,000 No Required 1 Required 2 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 General Journal Credit Date July 01, 2021 1 Debit 2,000,000 Investment in bonds Cash 2,000,000 2 December 31, 202 Cash Interest revenue 60,000 60,000 3 300,000 December 31, 202 Fair value adjustment Gain on investment (unrealized, OCI) 300,000 4 June 30, 2022 60,000 Cash Interest revenue 60.000 5 July 01, 2022 500,000 Loss on investment (unrealized, OCI) Fair value adjustment 500,000 6 July 01, 2022 Cash Fair value adjustment Investment in bonds 1,800,000 $ 200,000 2,000,000 7 July 01, 2022 No journal entry required 1. Prepare Colan's journal entries for the following transactions: a. The purchase of the Jackson bonds on July 1. b. Interest revenue for the last half of 2021 c. Any year-end 2021 adjusting entries. d. Interest revenue for the first half of 2022. e. 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 Colah's 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. 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 $ 60,000 $ 300,000 $360,000 2022 Total $ (140,000) $ 80,000) $ (440,000) $ 140,000) 140,000) $ 220,000
