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Colah Company purchased $2.7 million of Jackson, Inc., 5% bonds at par on July 1, 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2018, the Jackson bonds had a fair value of $3.07 million. Colah sold the Jackson bonds on July 1, 2019 for $2,430,000 a. The purchase of the Jackson bonds on July 1 b. Interest revenue for the last half of 2018. c. Any year-end 2018 adjusting entries. d. Interest revenue for the first half of 2019. e. Any entries necessary upon sale of the Jackson bonds on July 1, 2019, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale. Required 1. Prepare Colah's journal entries for above transaction. 2. Fill out the following table to show the effect of the Jackson bonds on Colah's net income, other comprehensive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019 Prepare Colah's journal entries for above transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions. (i.e.5 should be entered as 5,000,000)) View transaction list Journal entry worksheet 2 3 4 5 6 7 Record the purchase of the Jackson bonds on July 1 Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2018 Investment in Jackson bonds Cash Required 1 Required 2 Prepare Colah's journal entries for above transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions. (i.e. 5 should be entered as 5,000,000) View transaction list Journal entry worksheet 2 4 5 6 7 Record the interest revenue for the last half of 2018. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Cash 2018 nterest revenue Journal entry worksheet 2 4 5 6 Record the entry to adjust to fair value at year end. Note: Enter debits before credits. Credit Date December 31, 2018 General Journal Debit Fair value adjustment Unrealized holding gain-oci Journal entry worksheet 2 3 4 5 6 7 Record the interest revenue for the first half of 2019. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2019Cash Interest revenue View transaction list es Journal entry worksheet 2 3 4 6 7 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2019 Unrealized holding loss-OCI Fair value adjustment 1 2 3 4 5 7 Record the entry for reclassification adjustment. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2019Fair value adjustment Reclassification adjustment-oCI 1 2 3 4 5 7 Record the entry for reclassification adjustment. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2019Fair value adjustment Reclassification adjustment-oCI Journal entry worksheet 2 3 4 5 6 7 Record the sale of the Jackson bonds on July 1, 2019. Note: Enter debits before credits. Date General Journal Debit Credit July 01, 2019 Cash Loss-NI Investment in Jackson bonds Required 1 Required 2 es Fill out the following table to show the effect of the Jackson bonds on Colah's net income, other comp comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019. (Enter your answer in (i.e. 5 should be entered as 5,000,000)) 2018 2019 Total Net Income OCI Comprehensive Income K Required 1 Required 2

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