Question $3$ of $4$

$\frac{-}{25}$

Current Attempt in Progress

The following information relates to the debt securities investments of Pearl Company.

On February $1,$ the company purchased $10\%$ bonds of Gibbons Co$.$ having a par value of $$325,200$ at $100$ plus accrued interest. Interest is payable April $1$ and October $1.$

On April $1,$ semiannual interest is received.

On fuly $1,9\%$ bonds of Sampson, Inc. were purchased. These bonds with a par value of $$219,600$ were purchased at $100$ plus accrued interest. Interest dates are June $1$ and Decernber $1.$

On September $1,$ bonds with a par value of $$57,600,$ purchased on February $1,$ are sold at $99$ plus accrued interest.

On October $1,$ serniannual interest is received.

On December $1,$ semiannual interest is received.

On December $31,$ the fair value of the bonds purchased February $1$ and July $1$ are $95$ and $93,$ respectively.

Prepare any journal entries you consider necessary, including year$-$end entries $($Decernber $31),$ assuming these are available$-$for$-$sale securities$.($List all debit entries before credit entries. Credit account titles are automatically indented when anount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter ofor the amounts.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

$(1)$

$(2)$

$(3)$

$(4)$