Prepare all journal entries related to the following investment:

ABC Company purchased $1 million of XYZ Inc. 5% bonds at face value on July 1, 2017, with interest paid semiannually. ABC Company receives interest semiannually on June 30 and December 31, with the first interest payment on December 31, 2017. ABC Company bought the bonds not intending to profit from short-term differences in price in days and not to hold it to maturity.

On December 31, 2017, the fair value of the XYZ Inc. bonds was $1.2 million. ABC sold the XYZ Inc. bonds on January 2, 2018 for $900,000. ABCs fiscal year ends on December 31.