Stewart Enterprises has the following Investments, all purchased prior to 2021: Stewart does not intend to sell any of these investments and does not belleve it is more likely than not that it will have to sell any of the bond investments before fair value recovers. Required: For each investment, Prepare the appropriate adjusting journal entries to account for each investment for 2021 and 2022 1. Bee Company 5% bonds, purchased at face value, with an amortized cost of $4.000.000, and classified as held to maturity. At December 31, 2021, the Bee Investment had a fair value of $3.500,000, and Stewart calculated that $240.000 of the fair value decline Is a credit loss and $260.000 is a noncredit loss. At December 31, 2022 the Bee Investment had a fair value of $3.700.000, and Stewart calculated that $140,000 of the difference between fatr value and amortized cost was a credit loss and $160,000 was a noncredit loss. 2 Oliver Corporation 4% bonds, purchased at face value, with an amortized cost of $2.500.000, classified as a trading security. Because of unrealized losses prior to 2021, the Oliver bonds have a fair value adjustment account with a credit balance of $200.000, such that the carrying value of the Oliver Investment is $2,300,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Oliver Investment had a fair value of $2.200.000, and Stewart calculated that $120.000 of the difference between amortized cost and fair value is a credit loss and $180.000 is a noncredit loss. At December 31, 2022 the Oliver investment had a fair value of $2.700.000 3. Jones Inc. 6% bonds, purchased at face value, with an amortized cost of $3,500,000, and classified as an available-for-sale Investment. Because of unrealized losses prior to 2021, the Jones bonds have a fair value adjustment account with a credit balance of $400,000, such that the carrying value of the Jones Investment is $3.100.000 prior to making any adjusting entries in 2021. At December 31, 2021, the Jones Investment had a fair value of $2,700,000, and Stewart calculated that $225,000 of the difference between amortized cost and fair value is a credit loss and $575.000 is a noncredit loss. At December 31, 2022, the Jones Investment had a falr value of $2,875,000, and Stewart calculated that $125,000 of the difference between amortized cost and fair value is a credit loss and $500,000 is a noncredit loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Bee Company 5% bonds, purchased at face value, with an amortized cost of $4,000,000, and classified as held to maturity. At December 31, 2021, the Bee investment had a fair value of $3,500,000, and Stewart calculated that $240,000 of the fair value decline is a credit loss and $260,000 is a noncredit loss. At December 31, 2022, the Bee investment had a fair value of $3,700,000, and Stewart calculated that $140,000 of the difference between fair value and amortized cost was a credit loss and 5160,000 was a noncredit loss. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less View transaction at Journal entry worksheet Record any necessary journal entry for the credit losses. Note: Enter dehits before credits Debit Credit Date General Journal December 31, 2021 Credit loss expense (NI) Allowance for credit losses Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Oliver Corporation 4% bonds, purchased at face value, with an amortized cost of $2,500,000, classified as a trading security. Because of unrealized losses prior to 2021, the Oliver bonds have a fair value adjustment account with a credit balance of $200,000, such that the carrying value of the Oliver investment is $2,300,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Oliver investment had a fair value of $2,200,000, and Stewart calculated that $120,000 of the difference between amortized cost and fair value is a credit loss and $180,000 is a noncredit loss. At December 31, 2022, the Oliver investment had a fair value of $2,700,000. (If no entry is required for a transaction/event select "No journal entry required" in the first account field) Show less View transaction Mat Journal entry worksheet 1 2 Record the fair value adjustment. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Jones Inc. 6% bonds, purchased at face value, with an amortized cost of $3,500,000, and classified as an available-for-sale investment. Because of unrealized losses prior to 2021, the Jones bonds have a fair value adjustment account with a credit balance of $400,000, such that the carrying value of the Jones investment is $3,100,000 prior to making any adjusting entries in 2021. At December 31, 2021, the Jones investment had a fair value of $2,700,000, and Stewart calculated that $225,000 of the difference between amortized cost and fair value is a credit loss and $575,000 is a noncredit loss. At December 31, 2022, the Jones investment had a fair value of 52,875,000, and Stewart calculated that $125,000 of the difference between amortized cost and fair value is a credit loss and $500,000 is a noncredit loss. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less View transaction Mist Journal entry worksheet 3 2 4 Record any necessary journal entry for the credit losses. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general Journal