Sheffield Corp., a public company, purchased $282,000 of five-year, 6% Hydrocor bonds at par on June 30, 2021. Interest is paid semi-annually each June 30 and December 31. At December 31, 2021, the bonds were trading at 97. Sheffield Corp. purchased Hydrocors bonds for trading purposes.

Prepare the journal entry to record the purchase of the bonds on June 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
June 30	enter an account title to record purchase of investment Loss on Sale of Trading InvestmentsInvestment in AssociateNo EntryCashInterest ExpenseInvestment Income or LossInvestments at FVTPLInterest ReceivableGain on Fair Value Adjustment - FVTPL	enter a debit amount	enter a credit amount
	enter an account title to record purchase of investment No EntryCashInterest ExpenseInvestment in AssociateInvestment Income or LossInvestments at FVTPLLoss on Sale of Trading InvestmentsInterest ReceivableGain on Fair Value Adjustment - FVTPL	enter a debit amount	enter a credit amount
	(To record purchase of investment.)

Prepare the journal entry to record the receipt of the first interest payment on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title for the journal entry on December 31 No EntryCashLoss on Sale of Trading InvestmentsGain on Fair Value Adjustment - FVTPLInvestment Income or LossInterest ReceivableInterest ExpenseInvestment in AssociateInvestments at FVTPL	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 Investment Income or LossInterest ReceivableGain on Fair Value Adjustment - FVTPLLoss on Sale of Trading InvestmentsInterest ExpenseInvestments at FVTPLCashNo EntryInvestment in Associate	enter a debit amount	enter a credit amount

Prepare the journal entry to record any required adjusting journal entry on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to record fair value adjustment on December 31 Investments at FVTPLInterest ExpenseCashGain on Fair Value Adjustment - FVTPLInvestment in AssociateInvestment Income or LossInterest ReceivableLoss on Sale of Trading InvestmentsNo Entry	enter a debit amount	enter a credit amount
	enter an account title to record fair value adjustment on December 31 Loss on Sale of Trading InvestmentsInterest ExpenseInvestments at FVTPLGain on Fair Value Adjustment - FVTPLInvestment in AssociateNo EntryInterest ReceivableInvestment Income or LossCash	enter a debit amount	enter a credit amount
	(To record fair value adjustment.)