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Trading, AFS, and HTM Debt Investments Assume The Coca-Cola Company makes the following intercorporate debt investments on January 2, 2022: Securities A and B are
Trading, AFS, and HTM Debt Investments Assume The Coca-Cola Company makes the following intercorporate debt investments on January 2, 2022: Securities A and B are purchased at par value. Security C is a 3-year $1,000,000 face value corporate bond paying 4 percent interest annually on December 31 and yielding 5 percent to maturity. Coca-Cola sells Security A for $530,000 on June 15,2022 , and acquires Security D on October 15,2022 , for $500,000. Security D is classified as a trading security, purchased at par value. December 31, 2022, fair values are as follows: Cash interest of $24,000 is earned and received on the investments in Securities B and D on December 1, 2022. Interest of $40,000 is received on Security C on December 31,2022. No changes in value are credit-related, and Security B is not expected to be sold before the loss is recovered. Required Prepare all entries related to the above investments for 2022. Note: Round answers to the nearest dollar, when applicable. Prepare all entries related to the above investments for 2022
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