S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair value recovers. Prepare journal entries to record (a) any unrealized gains or losses occurring in 2018 and (b) the sale of the bonds in 2019, including recognition of any unrealized gains in 2019 prior to sale and reclassification of amounts out of OCI.

• Record the entry to adjust to fair value on the date of sale.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 03, 2019

• Record the entry to reverse the previous fair value adjustment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 03, 2019

• Record the entry for sale of investment in Coca Cola bonds.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 03, 2019