Colah Company purchased $ of Jackson, Incorporated, bonds at par on July with interest paid semiannually.
Colah determined that it should account for the bonds as an availableforsale investment. At December the Jackson bonds
had a fair value of $ Colah sold the Jackson bonds on July for $
Required:
Prepare Colah's journal entries for the following transactions:
a The purchase of the Jackson bonds on July
b Interest revenue for the last half of
c Any yearend adjusting entries.
d Interest revenue for the first half of
e Any entries necessary upon sale of the Jackson bonds on July including updating the fairvalue adjustment,
recording any reclassification adjustment, and recording the sale.
Complete the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and
comprehensive income for and cumulatively over and
Complete this question by entering your answers in the tabs below.
Prepare Colah's journal entries for the following transactions:
a The purchase of the Jackson bonds on July
b Interest revenue for the last half of
c Any yearend adjusting entries.
d Interest revenue for the first half of
e Any entries necessary upon sale of the Jackson bonds on July including updating the fairvalue adjustment, recording any
reclassification adjustment, and recording the sale.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Enter your answers in
whole dollars, and not in millions.
