Question 1 Partially correct Mark 87.00 out of 96.00 Flag question Edit question Reporting of and Analyzing Financial Effects of Trading (Debt) Securities Barclay, Inc., had the following transactions and adjustments related to a bond investment that is classified as a trading security. 2018 Nov. 1 Purchased $300,000 face value of Joos, Inc.'s 9% bonds at 102 plus a brokerage commission of $900. The bonds pay interest on October 31 and April 30 and mature in 15 years. Barclay expects to sell the bonds in the near future. Dec 31 Made the adjusting entry to record interest earned on investment in the Joos bonds. Dec. 31 Made the adjusting entry to record the current fair value of the Joos bonds. At December 31, 2018, the fair value of the Joos bonds was $301,500. 2019 Apr. 30 Received the semiannual interest payment on investment in the Joos bonds. May 1 Sold the Joos bond investment for $300,900 cash. b. Post the journal entries from a to their respective T-accounts. Cash Investment in Joos 4,500 x 306,900 306,900 OX 300,900 0 0 301,500 Interest Revenue 0 4,500 0 9,000 Gain on Sale Interest Receivable 4,500 4,500 0 0 Unrealized Gain 0 Unrealized Loss 5,400 0 0 Loss on Sale 600 0 c. Record each of the transactions in the financial statement effects template. Use negative signs with answers when appropriate. Balance Sheet Income Statement Net Income Cash Asset (306,900) 0 Revenue 0 Expenses 0 07 0 OX Transaction 11/1 Buy Joos bonds at 102 12/31Accrue interest. 12/31 Recognize decline in value of bonds. 4/30Receive interest. 5/1 Sold Joos bonds. + Noncash Assets = 306,900= 4,500 (5,400) = (4,500) (301,500) Liabilities + Contrib. Capital + Earned Capital 0 4,500 X + 0 0 + 0 4,500 0+ (5,400) X + (5,400) 0 + 9,000 X + 0 X 0 + (600) X + (600) 4,500 0 0 5,400 0 13,500 300,900 9,000 0 (5,400) 9,000 (600) (600) X