Problem 17-07 Your answer is partially correct. Try again. The following information relates to the debt securities investments of Flint Company. 1. On February 1, the company purchased 10% bonds of Gibbons Co. having a par value of $312,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semiannual interest is received. 3. On July 1, 9% bonds of Sampson, Inc. were purchased. These bonds with a par value of $192,000 were purchased at 100 plus accrued interest. Interest dates are June 1 and December 1. 4. On September 1, bonds with a par value of $63,600, purchased on February 1, are sold at 97 plus accrued interest. 5. On October 1, semiannual interest is received. 6. On December 1, semiannual interest is received. 7. On December 31, the fair value of the bonds purchased February 1 and July 1 are 93 and 91, respectively. (a) Prepare any journal entries you consider necessary, including year-end entries (December 31), assuming these are available-for-sale securities. (Note to instructor: Some students may debit Interest Receivable at date of purchase instead of Interest Revenue. This procedure is correct, assuming that when the cash is received for the interest, an appropriate credit to Interest Receivable is recorded.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Date Debit Credit Account Titles and Explanation Debt Investments (1) Feb. 1 312000 Interest Revenue 10400 Cash 322400 (2) Apr. 1 Cash 15600 Interest Revenue 15600 (3) Jul. 1 Debt Investments 192000 Interest Revenue 1440 Cash 193440 (4) Sep. 1 Cash 74112 Loss on Sale of Investmen 1908 Debt Investments 63600 X Interest Revenue 12420 > (5) Oct. 1 Cash 12420 Interest Revenue 12420 (6) Dec. 1 Cash 8640 Interest Revenue 8640 (7) Dec. 31 Interest Receivable 7650 7650 Interest Revenue (To record interest.) (Unrealized Holding Gain or 34668 34668 Fair Value Adjustment (To record adjustment.) - 1 (4) Sep. 1 Cash 64363 Loss on Sale of Investmen 1908 Debt Investments 63600 Interest Revenue 2671 E KI