*****Please keep in mind that the first part of this question requires SIX journal entries. ****

Exercise 12-26 Fair value option; available-for-sale investments [L012-2, 12-3, 12-8] Colah Company purchased $2.9 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 $3.29 million. Colah sold the Jackson bonds on July 1, 2019 for $2,610,000. a. The purchase of the Jackson bonds on July 1 b. Interest revenue for the last half of 2018. C.Any year-end 2018 adjusting entries d. Interest revenue for the first half of 2019. e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2019 Required 1. Prepare Colah's journal entries for above transaction 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 2018, 2019, and cumulatively over 2018 and 2019. Journal entry worksheet Record the purchase of the Jackson bonds on July 1 Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2018 Record entry Clear entry View general journal Journal entry worksheet 4 Record interest revenue for the last half of 2018 Note: Enter debits before credits. t Credit Date General Journal Debit December 31, 2018 Record entry Clear entry View general journal Journal entry worksheet 4 Record the entry to adjust to fair value at year end. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Journal entry worksheet 4 Record the interest revenue for the first half of 2019 Note: Enter debits before credits. Debit Credit Date General Journal June 30, 2019 Record entry Clear entry View general journal Journal entry worksheet 4 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Debit Credit Date General Journal July 01, 2019 Record entry Clear entry View general journal Journal entry worksheet 4 Record the sale of the Jackson bonds on July 1, 2019. Note: Enter debits before credits. Debit Credit Date General Journal July 01, 2019 Record entry Clear entry View general journal Required 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 2018, 2019, and cumulatively over 2018 and 2019. (Amounts to be deducted should be indicated with a minus sign.) 2018 2019 Total Net Income oCI Comprehensive Income Required 1 Required 2