Colah Company purchased $2,300,000 of Jackson, Incorporated, 6% bonds at their face amount on July 1, 2024, with interest paid semi-annually. The bonds mature in 20 years but Colah planned to keep them for less than three years, and classified them as available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2024, the Jackson bonds had a fair value of $2,630,000. Colah sold the Jackson bonds on July 1, 2025 for $2,070,000. a. The purchase of the Jackson bonds on July 1. b. Interest revenue for the last half of 2024. c. Any year-end 2024 adjusting entries. d. Interest revenue for the first half of 2025. e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2025. Required: 1. Prepare Colah's journal entries for above transactions. 2. Complete the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and comprehensive income for 2024, 2025, and cumulatively over 2024 and 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Colah's journal entries for above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the purchase of the Jackson bonds on July 1. Note: Enter debits before credits. >
Colah Company purchased $2,300,000 of Jackson, Incorporated, 6% bonds at their face amount on July 1, 2024, with interest paid semi-annually. The bonds mature in 20 years but Colah planned to keep them for less than three years, and classified them as available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2024, the Jackson bonds had a fair value of $2,630,000. Colah sold the Jackson bonds on July 1, 2025 for $2,070,000. a. The purchase of the Jackson bonds on July 1. b. Interest revenue for the last half of 2024. c. Any year-end 2024 adjusting entries. d. Interest revenue for the first half of 2025. e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2025. Required: 1. Prepare Colah's journal entries for above transactions. 2. Complete the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and comprehensive income for 2024, 2025, and cumulatively over 2024 and 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Colah's journal entries for above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the purchase of the Jackson bonds on July 1. Note: Enter debits before credits. >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Colah Company purchased $2,300,000 of Jackson, Incorporated, 6% bonds at their face amount on July 1, 2024, with interest paid
semi-annually. The bonds mature in 20 years but Colah planned to keep them for less than three years, and classified them as
available for sale investments. When the bonds were acquired Colah decided to elect the fair value option for accounting for its
investment. At December 31, 2024, the Jackson bonds had a fair value of $2,630,000. Colah sold the Jackson bonds on July 1, 2025
for $2,070,000.
a. The purchase of the Jackson bonds on July 1.
b. Interest revenue for the last half of 2024.
c. Any year-end 2024 adjusting entries.
d. Interest revenue for the first half of 2025.
e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2025.
Required:
1. Prepare Colah's journal entries for above transactions.
2. Complete the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and
comprehensive income for 2024, 2025, and cumulatively over 2024 and 2025.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare Colah's journal entries for above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
whole dollars.
View transaction list
Journal entry worksheet
<
1
2
3
4
5
6
Record the purchase of the Jackson bonds on July 1.
Note: Enter debits before credits.
Date
July 01, 2024
General Journal
Debit
Credit
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