On August 1, 2021, Sarasota Corporation, a public company, purchased $87,600 of Alaska Ltd. five-year, 7% bonds at par. The bonds were purchased for trading purposes and pay interest semi-annually on January 31 and July 31 of each year. On December 31, 2021, Sarasotas year end, the bonds fair value was $88,880. The bonds were sold on February 1, 2022, for $89,760.

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Record the purchase of the bonds on August 1, 2021. (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.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 1	No EntryInvestment Income or LossCashInterest RevenueInvestments at FVTPLInvestment in AssociateInterest ReceivableInterest Expense
	Investment in AssociateInterest RevenueInvestments at FVTPLInterest ExpenseInvestment Income or LossCashNo EntryInterest Receivable
	(To record purchase of investment.)

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Record any adjusting journal entries that are required at December 31, 2021. (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. Round answer to 0 decimal places, e.g. 5,276.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Interest RevenueInterest ReceivableNo EntryInvestment in AssociateInvestments at FVTPLCashInvestment Income or LossInterest Expense
	Interest ExpenseCashInvestment Income or LossInvestments at FVTPLInterest RevenueNo EntryInvestment in AssociateInterest Receivable
	(To accrue interest revenue.)
Dec. 31	Investments at FVTPLCashInvestment Income or LossInvestment in AssociateNo EntryInterest ReceivableInterest RevenueInterest Expense
	Investment in AssociateInterest RevenueCashNo EntryInterest ExpenseInterest ReceivableInvestment Income or LossInvestments at FVTPL
	(To record fair value adjustment.)

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New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Indicate how the investment is presented on Sarasota Corporations December 31, 2021, balance sheet.

SARASOTA CORPORATION Balance Sheet (Partial) For the Month Ended December 31, 2021For the Quarter Ended December 31, 2021December 31, 2021
Assets
Property, Plant and EquipmentLong-Term InvestmentsIntangible AssetsNon-Current AssetsCurrent AssetsShort-Term Investments
Investments at Amortized Cost, Treasury BillInvestments at Amortized CostInvestments at Fair Value through Other Comprehensive IncomeFair Value Through Profit or Loss InvestmentsInvestment in Associate		$

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Record the receipt of the first interest payment on January 31, 2022. (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. Round answer to 0 decimal places, e.g. 5,276.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	Interest RevenueInvestment in AssociateInterest ReceivableInvestments at FVTPLInvestment Income or LossCashNo EntryInterest Expense
	No EntryCashInvestment in AssociateInterest ReceivableInvestment Income or LossInterest ExpenseInvestments at FVTPLInterest Revenue
	Interest ReceivableInvestments at FVTPLInvestment Income or LossInvestment in AssociateNo EntryInterest RevenueInterest ExpenseCash
	(Collection of interest receivable.)

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Incorrect answer iconYour answer is incorrect.

Record the sale of the bonds on February 1, 2022. (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.)

Date	Account Titles and Explanation	Debit	Credit
Feb. 1	Investments at FVTPLInterest ExpenseNo EntryInterest RevenueLoss on Sale of FVTPL InvestmentsInvestment in AssociateInvestment Income or LossCashInterest Receivable
	No EntryLoss on Sale of FVTPL InvestmentsInvestment in AssociateInterest ReceivableInterest ExpenseInvestments at FVTPLInterest RevenueInvestment Income or LossCash
	Interest ReceivableInterest ExpenseNo EntryCashInterest RevenueInvestment in AssociateInvestments at FVTPLInvestment Income or LossLoss on Sale of FVTPL Investments
	(To record sale of bonds.)

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