The following information relates to Start Company's investment in available for sale bonds for 2019 Transactions: Jan 1 Jan 1 Purchased $30,000 face value of Bradford Company 8% bonds for S29,100. The more rate of interest is 10%, and interest on the bonds is payable each June 30 and December 31 Purchased $40,000 face value of Morris Company 10% bonds for 540,400. The market rate of interest is 9.8%, and interest on the bonds is payable each June 30 and December 31 Collected the interest and the following information is available: June 30 Fair Value Security Bradford Company 8% Morris Company 10% $29,160 40,800 Transactions: July 1 Purchased $25,000 face value of Whipple Corporation 11% bonds for $23,000. The market rate of interest is 12%, and interest on the bonds is payable each June 30 and December 31 Sold the Whipple bonds for $22,750 plus accrued interest. Starr collected the interest, sold the Morris bonds for 540,800, and the following information is also available: Nov. 30 Dec 31 Fair Valne Security Security Fair Value Bradford Company 8% bonds 528,800 Required: 1. Prepare journal entries to record the previous information for 2019. Use the effective interest method Assure that stor prepares semiannuel financial statements 2. Show the items of income or loss from investment transactions that Starr reports for each 2019 semiannual income statement 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to depose of all investments within one year of purchase GENERAL JOURNAL DATE ACCOUNT POSE 1 2 5 6 7 8 9 10 11 12 Income Statement compro Chapter 13 Problems eBook DAT 1 3 . 5 . . . 10 11 12 13 14 15 16 17 18 Check My Work 5 more Check My Work uses remaining 2 Show the items of income or loss from investment transactions that Start reports for each 2019 semiannual income statement Income Statement instructions Starr Company Partial Income Statement For the Six Months Ended For Semiannual Period Ended 6/50/2019 For Semiannual Period Ended 1 12/31/2019 2 3 4 un 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to dispose of investments within one year of purchase Balance Sheet Instructions Starr Company Partial Balance Sheet Balance Sheet as of Balance Sheet as of 1 12/31/2019 06/30/2019 2 3 Current Assets: + $ 5 6 7 Shareholders' Equity $ Accumulated Other Comprehensive Income: 9