QS 15-6 Accounting for debt investments classified as held-to-maturity LO P2 Prepare Garzon Company's journal entries to record the following transactions for the current year. 38 Jan. 1 Purchases 7.5 bonds (as a held-to-maturity investment) issued by BS at a cost of $60,000, which is the par value. July 1 Receives first semiannual payment of interest from PBS bonds. Dec. 31 Receives a check from PBS in payment of principal ($60,000) and the second semiannual payment of interest. View transaction list es Journal entry worksheet 2 3 > Purchases 7.5% bonds (as a held-to-maturity investment) issued by PES at a cost of $60,000, which is the par value. Note: Enter debits before credits Date General Journal Debit Credit Jan. 1 View general journal Clear entry Record entry Exercise 15-5 Fair value adjustment to available-for-sale debt securities LO P3 On December 31, Lujack Co. held the following short-term available-for-sale securities. Lujack had no short-term investments prior to the current period Prepare the December 31 year-end adjusting entry to record the fair value adjustment for these debt securities. Complete this question by entering your answers in the tabs below. Fair Value Adjustment General Journal Computation of fair value adjustment. Computation of Fair Value Adjustment Unrealized Cost Fair Value Amount Available for Sale Securities Gain or Loss? Nintendo Co. notes Atlantic bonds Kellogg Co. notes McDonald's Corp. bonds Totals S 58.200 $ 63,438 23.280 21,650 41,904 39,390 78,570 74,642 $ 201,954 $ 199,120 $ 2,834 Unrealized gain General Journal >