_{The following transactions relate to Portland Cement Ltd.s investment in the debt securities of Shamrock Inc. during 2021 and 2022. Portland is a public company and purchased the investment to earn interest income.}

_{2021 Jan. 1 Purchased $140,400 of Shamrock Inc. eight-year, 7% bonds for $158,729, to yield a market interest rate of 5%. Interest is payable semi-annually on July 1 and January 1. July 1 Received semi-annual interest on Shamrock bonds. Dec. 31 Accrued interest at Portlands year end.}

_{2022 Jan. 1 Recorded receipt of interest payment from bonds. July 1 Recorded receipt of interest payment from bonds. 2 Sold the bonds on the open market for $155,000.}

_{Collapse question part (a)}

_{Correct answer. Your answer is correct. Record the above transactions. (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. Record journal entries in the order presented in the problem. Round answer to 0 decimal places, e.g. 5,276.)}

₂₀₂₁

_{Date Account Titles and Explanation Debit Credit Entry field with correct answer Jan. 1 Entry field with correct answer Investments at Amortized Cost Entry field with correct answer 158729 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 158729 (To record purchase of investment.) Entry field with correct answer July 1 Entry field with correct answer Cash Entry field with correct answer 4914 Entry field with correct answer Entry field with correct answer Investments at Amortized Cost Entry field with correct answer Entry field with correct answer 946 Entry field with correct answer Interest Revenue Entry field with correct answer Entry field with correct answer 3968 (To record collection of interest.) Entry field with correct answer Dec. 31 Entry field with correct answer Interest Receivable Entry field with correct answer 4914 Entry field with correct answer Entry field with correct answer Investments at Amortized Cost Entry field with correct answer Entry field with correct answer 969 Entry field with correct answer Interest Revenue Entry field with correct answer Entry field with correct answer 3945 (To accrue interest revenue.)}

₂₀₂₂

_{Date Account Titles and Explanation Debit Credit Entry field with correct answer Jan. 1 Entry field with correct answer Cash Entry field with correct answer 4914 Entry field with correct answer Entry field with correct answer Interest Receivable Entry field with correct answer Entry field with correct answer 4914 (Collection of interest receivable.) Entry field with correct answer July 1 Entry field with correct answer Cash Entry field with correct answer 4914 Entry field with correct answer Entry field with correct answer Interest Revenue Entry field with correct answer Entry field with correct answer 3920 Entry field with correct answer Investments at Amortized Cost Entry field with correct answer Entry field with correct answer 994 (To record collection of interest.) July 2 Entry field with correct answer Cash Entry field with correct answer 155000 Entry field with correct answer Entry field with correct answer Loss on Sale of Investments Entry field with correct answer 820 Entry field with correct answer Entry field with correct answer Investments at Amortized Cost Entry field with correct answer Entry field with correct answer 155820 (To record sale of bonds.)}

_{SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 8 of 15 used}

_{Collapse question part (b)}

_{Incorrect answer. Your answer is incorrect. Try again. What is the balance in the investment asset account on December 31, 2021? (Round answer to 0 decimal places, e.g. 5,276.)}

_{Balance of investments in bonds Dec. 31, 2021}