On jJuly1, 2020, montana inc purchased for par, $300,000 of upper armour co. 8% bonds that ... Question: On July 1, 2020, Montana Inc purchased for par, $300,000 of Upper Armour Co. 8% bonds that mature... On July 1, 2020, Montana Inc purchased for par, $300,000 of Upper Armour Co. 8% bonds that mature on June 30, 2025. Cash interest is paid semiannually on June 30 and December 21. Montana classifies the investments as Available for Sale.

1. Prepare the journal entry for the purchase on July 1

2. Record the interest receipt on December 21, 2020.

3. The fair value of the bonds on December 31, 2020, is $280,000. Record, if necessary, any applicable journal entry

4. Show the following financial statements on December 31, 2020.

Income Statment

Balance Sheet

Statement of Comprehensive income

5. At December 31, 2021, the fair value of the bonds is $31,000. Record, if necessary, any applicable journal entry.

6. On January 15, 2022, Montana sells the bonds for $31,800. Record, if necessary, any required journal entry for the sale and any other entries that would be required on January 15, 2022, or December 21, 2022. (either date but not both)