On January $1,2024,$ Brian Company purchased at par $$800,000,6$ percent bonds issued by Laura Company to be actively

traded. At December $31,2024,$ the bonds had a fair value of $$782,500.$ The bond investment was sold on July $1,2025,$ for

$$805,500.$ Brian Company's fiscal year ends on December $31.$

Record $(1)$ the adjustment of the bond investment on December $31,2024,$ and $(2)$ the sale of the bonds on July $1,2025.$

Ignore interest.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Reclassify any gain or loss on the sale of the investments on July $01,2025.$

Note: Enter debits before credits.